The International Monetary Fund (IMF), at the conclusion of its mission to Pakistan, announced that significant progress had been achieved toward reaching a staff-level agreement under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). The IMF delegation, led by Mission Chief Eva Petrova, visited Karachi and Islamabad from September 24 to October 8, 2025, to conduct detailed discussions regarding the second review of the EFF and the first review of the RSF.
At the end of the discussions, Petrova stated that the IMF mission and Pakistani authorities had made substantial headway toward finalizing a staff-level agreement on the 37-month EFF program’s second review and the 28-month RSF program’s first review. She said the implementation of the program remains strong and is broadly aligned with the government’s commitments.
The statement highlighted that notable progress was made in several key areas during the negotiations. These included strengthening public finances while maintaining fiscal stability, providing necessary support for post-flood recovery efforts, keeping inflation within the target range set by the State Bank of Pakistan, maintaining a data-driven tight monetary policy, implementing regular tariff adjustments and cost-reduction reforms in the energy sector to ensure sustainability, and advancing structural reforms focused on improving governance, transparency, and business competitiveness and reducing the state’s footprint in the economy.
Furthermore, meaningful discussions were also held on the government’s climate reform agenda to advance environmental sustainability under the RSF program. Both the IMF team and Pakistani authorities will continue their policy dialogue in the coming days to finalize the remaining issues.
The IMF also expressed sympathy with those affected by recent floods in Pakistan and extended its gratitude to the government, private sector, and development partners for their cooperation and hospitality during the mission.
Earlier reports suggested that the negotiations had ended without any conclusive results. However, according to sources, the IMF has shared a draft Memorandum of Economic and Financial Policies (MEFP) with the Ministry of Finance.
Finance Minister Muhammad Aurangzeb stated that once the MEFP is signed, a staff-level agreement between Pakistan and the IMF will be finalized. He added that Pakistan has already met all targets under the ongoing program and that a consensus has been reached on key issues.
