After intense talks in Islamabad and Karachi, the International Monetary Fund (IMF) has claimed significant progress in talks with Pakistani authorities about the first review of the nation’s economic program under the Extended Fund Facility (EFF).
Between February 24 to March 14, 2025, the IMF mission, headed by Mission Chief Nathan Porter, had talks where they discussed the current EFF program as well as a possible new agreement under the IMF’s Resilience and Sustainability Facility (RSF).
In his closing remarks, Porter said, “The IMF and the Pakistani authorities made significant progress toward reaching a Staff Level Agreement on the first review under the 37-month Extended Arrangement.”
The IMF claims that Pakistan has shown excellent program implementation in a number of crucial sectors. Discussions on planned fiscal consolidation measures that aim to reduce public debt sustainably, maintain a restrictive monetary policy to manage inflation, and speed up cost-cutting reforms to increase the energy sector’s viability made significant progress.
The expedition also saw advancements in Pakistan’s structural reform plan, which aims to boost social protection, rebuild spending in the health and education sectors, and accelerate economic growth.
The IMF delegation also noted progress in talks about Pakistan’s climate reform plan, which aims to lessen the country’s susceptibility to natural disasters. The IMF’s Resilience and Sustainability Facility may be able to provide support for certain climate-related measures under a new agreement.
Porter said that policy conversations would continue virtually “to finalize these discussions over the coming days,” implying that certain technical matters need to be worked out before a definitive agreement can be revealed, despite the fact that the in-person meetings saw significant progress.
In order for Pakistan to obtain the subsequent funding tranche under the $7 billion EFF initiative that was approved last year—which is still necessary for the nation’s economic stability and external financial needs—this review must be completed successfully.
For fruitful conversations during the tour, the IMF delegation thanked development partners, private sector groups, and Pakistani authorities.
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Newson – According to the IMF, Pakistan Made Significant Progress Toward Staff-Level Agreement
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What progress has Pakistan made in IMF negotiations? – Talks advanced on fiscal consolidation, monetary policy, and energy sector reforms to ensure economic stability.
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What is the purpose of the IMF’s Resilience and Sustainability Facility (RSF)? – It supports climate-related reforms and helps Pakistan mitigate risks from natural disasters.
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When will the final IMF agreement be announced? – Virtual discussions will finalize technical details before an official agreement is confirmed.
