IMF Announces Substantial Progress on Pakistan’s Economic Program Review
ISLAMABAD: The International Monetary Fund (IMF) said it has made significant progress during discussions with the Pakistani authorities in the first review of the nation’s economic program under the Extended Fund Facility (EFF). Such discussions were made through intense consultations in Islamabad and Karachi between February 24 and March 14, 2025.
The IMF team, under Mission Chief Nathan Porter, considered two primary concerns: consideration of the ongoing EFF arrangement and examining the possibility of a new one in the form of an arrangement with the Resilience and Sustainability Facility (RSF) of the IMF.
At his press briefing close, Porter had mentioned, “The IMF and the Pakistani authorities have made notable progress towards completing a Staff Level Agreement for the first review of the 37-month Extended Arrangement.”
Based on the IMF, Pakistan has delivered a robust performance in executing the program in key sectors. The negotiations centered on budgetary measures designed to lower the public debt sustainably, restraining inflation through strict monetary policies and accelerating reform in the energy sector to contain costs.
The IMF also welcomed advances in Pakistan’s structural reforms, which seek to increase economic growth while increasing social protection. The reforms will also enhance spending on the health and education sectors.
Furthermore, the IMF team added that Pakistan is progressing with its climate reform agenda. These reforms are geared towards decreasing the threats posed by natural disasters and could potentially be financed using the IMF’s Resilience and Sustainability Facility.
Though substantial progress was achieved in the face-to-face discussions, Porter stated that certain policy discussions would proceed online to settle the remaining details within the next few days. This indicates that some technical points remain to be sorted out before the official announcement of the final agreement.
Completing this review successfully is a prerequisite for Pakistan to get the next tranche under the $7 billion EFF program approved last year. The money is important for Pakistan’s economic stability and for meeting its external financing needs.
The IMF mission team appreciated Pakistani authorities, private sector participants, and development partners for the fruitful discussions during the mission.
