The International Monetary Fund (IMF) on Thursday said that it has achieved “substantial progress” in its latest negotiations with Pakistan. The talks are being held to secure a staff-level agreement (SLA) on Pakistan’s economic programs under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
An IMF team, headed by Iva Petrova, traveled to Pakistan between September 24 and October 8, 2025, to discuss Pakistan’s performance on its financial reforms and second review of the EFF and first review of the RSF.
At the conclusion of the mission, the following update was provided by Iva Petrova:
The IMF mission and the authorities in Pakistan have progressed well towards finalizing a Staff-Level Agreement (SLA) for the second 37-month Extended Fund Facility (EFF) review and the first 28-month Resilience and Sustainability Facility (RSF) review.”
“Program implementation is on track, with strong implementation alignment between the government’s actions and the agreed targets.”. Major areas of accomplishment are keeping fiscal prudence to strengthen public finances while underpinning flood rebuilding efforts; containing inflation in the target range through adhering to a severe, fact-based monetary policy; and increasing the sustainability of the energy sector through routine tariff revisions and expense-reduction measures. There has also been work on structural reforms to decrease the role of the state in the economy, enhance good governance, and foster a more competitive business climate.
The IMF further added that productive discussions were ensued on Pakistan’s reform proposals aimed at enhancing climate resilience, and that RSF reform actions are being advanced.
The IMF mission extended its condolences to the people hit by the recent floods in Pakistan and was appreciative of the country’s authorities, the private sector, and development partners for their hospitality and cooperation during the visit.
The July 2024 approved IMF loan is to stabilize Pakistan’s economy and facilitate long-term growth. Pakistan also received a May 2025 $1 billion loan to boost resilience to climate-related pressures, though this money is subject to passing the EFF reviews.
The result of these negotiations is pivotal for Pakistan’s economic destiny, as the IMF’s advice is instrumental in assisting the nation in coping with persistent economic woes.
