Karachi/Islamabad: Pakistan is well-prepared for the upcoming review by the International Monetary Fund (IMF) that could unlock a $1.2 billion disbursement, Finance Minister Muhammad Aurangzeb said on Wednesday as an IMF mission began discussions in Karachi.
The visiting staff mission will undertake the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), according to official statements issued by the IMF and the Ministry of Finance.
The IMF delegation, led by Iva Petrova, has arrived in Pakistan and will remain in the country until March 11 to complete the two reviews. Successful completion is expected to release approximately $1.2 billion — including $1 billion under the EFF and $200 million under the RSF — by late April.
“We are getting ready for the third review,” Aurangzeb said, adding that discussions would cover performance benchmarks, structural benchmarks and a forward-looking assessment of the programme. He noted that he would meet the IMF team in Islamabad for further deliberations, terming the engagement a “meaningful conversation,” while cautioning that it was premature to predict the outcome.
Earlier, the IMF acknowledged that Pakistan’s recent policy measures have helped stabilise the economy and rebuild investor confidence.
According to official data, Pakistan posted a primary fiscal surplus of 1.3 percent of GDP for FY25, in line with programme targets. The State Bank of Pakistan has projected inflation to remain within the 5–7 percent range for FY26 and FY27. Meanwhile, foreign exchange reserves stood at $14.5 billion at the end of FY25, with a target of $18 billion by June.
Key areas of discussion during the review will include circular debt management in the power sector, recent electricity tariff adjustments, and implementation of the Governance and Corruption Diagnostic report as well as the National Fiscal Pact. Officials confirmed that the fiscal framework for the FY2026-27 federal budget will also come under review.
The outcome of the IMF mission is seen as critical for sustaining macroeconomic stability and maintaining external financing flows in the coming months.
