Pakistan and the International Monetary Fund (IMF) are likely to begin talks on September 23 for the fourth review of the over $7 billion Extended Fund Facility (EFF) programme, alongside the third review of the $1.4 billion Resilience and Sustainability Facility (RSF).
The two sides are expected to hold the reviews simultaneously, with the discussions focusing on Pakistan’s economic performance during the second half of the last fiscal year, covering the period from January to June 2026.
The outcome of the talks will be closely watched as Pakistan seeks to maintain progress under the IMF programme and secure continued financial support while meeting the commitments agreed with the lender.
During the review, the IMF mission is expected to assess the government’s performance against agreed programme targets and benchmarks for the January-June period. The discussions are also likely to cover fiscal management, revenue collection, expenditure controls, monetary policy, foreign exchange reserves and structural reforms.
The simultaneous RSF review will focus on Pakistan’s commitments related to climate resilience and reforms aimed at strengthening the country’s ability to deal with climate-related risks and vulnerabilities.
The IMF programme remains critical for Pakistan’s economic stabilisation efforts, particularly as the country continues to manage its external financing requirements and maintain adequate foreign exchange buffers.
The review process is also important for maintaining confidence among international lenders and investors, as progress under the IMF programme can influence the availability of external financing and the broader outlook for Pakistan’s economy.
Pakistan will be required to demonstrate that it has remained on track with the agreed targets and policy measures during the review period. Any gaps identified by the IMF could lead to further discussions between the two sides over corrective measures and the implementation timeline.
The talks are therefore expected to assume significance for the government as it seeks to balance fiscal consolidation and economic reforms with the need to support growth and provide relief to businesses and consumers.
A successful completion of the review would pave the way for the next disbursement under the EFF, subject to approval by the IMF’s Executive Board, while progress on the RSF review would help unlock financing linked to climate-related reforms.