ISLAMABAD: The International Monetary Fund (IMF) and Pakistani authorities have made substantial progress toward reaching a staff-level agreement (SLA) on the second review of the 37-month Extended Fund Facility (EFF) and the first review of the 28-month Resilience and Sustainability Facility (RSF). However, discussions will continue in the coming days to resolve remaining policy differences.
The IMF, in a statement released Thursday, confirmed that a team led by Iva Petrova held discussions with Pakistani officials in Karachi and Islamabad from September 24 to October 8, 2025. Talks focused on both the EFF and RSF programmes.
Petrova noted that programme implementation remained strong and aligned with Pakistan’s commitments. She outlined several key areas where progress was made, including fiscal consolidation, maintaining tight and data-driven monetary policy to control inflation, energy sector reforms through tariff adjustments, and structural changes aimed at improving governance and fostering a competitive business environment.
“We also held productive discussions on the authorities’ reform agenda to strengthen climate resilience, including completing reform measures under the RSF,” she said.
The IMF has shared the draft Memorandum of Economic and Financial Policies (MEFP) with Pakistan’s Ministry of Finance, a key step toward finalising the agreement.
Petrova added that while important progress has been achieved, outstanding issues remain and further policy discussions are required. She expressed appreciation for the Pakistani authorities, private sector, and development partners for their cooperation and hospitality.
The outcome of these negotiations is critical for Pakistan, which continues to face economic challenges amid high inflation, energy sector losses, and climate-related disruptions. A successful agreement would unlock further disbursements and bolster economic stability.
The talks are expected to resume shortly, with a final agreement anticipated in the coming weeks.
