Pakistan Likely to Receive $1.2 Billion From IMF as Government Begins Preparations

Pakistan is likely to receive $1.2 billion from the International Monetary Fund (IMF) as the government begins preparations for the next economic review scheduled for September.

According to sources, an IMF review mission is expected to visit Pakistan next month for talks with the country’s economic team under the $7 billion Extended Fund Facility (EFF) programme.

The Ministry of Finance has directed all relevant ministries and divisions to prepare for the review and provide details on progress made toward agreed conditions, prior actions and structural benchmarks.

If the negotiations are successfully concluded and the review is approved by the IMF Executive Board, Pakistan is expected to receive around $1.2 billion.

Of the amount, approximately $1 billion is expected under the EFF programme, while another $200 million is likely to come under the IMF’s Resilience and Sustainability Facility (RSF) aimed at supporting climate-related reforms.

The upcoming review will also assess Pakistan’s progress under the RSF programme, with relevant ministries instructed to prepare detailed briefings for the IMF mission.

The government is expected to brief the IMF on implementation of the new budget and progress on structural reforms, including measures aimed at controlling circular debt in the power and gas sectors.

The IMF mission will also be updated on progress in the privatisation programme, foreign exchange reserves, the policy rate and inflation, according to sources.

Pakistan has so far received around $4.8 billion under the two IMF programmes, while more than $3 billion in additional financing is expected by September next year.

Sources at the Ministry of Finance said the IMF programme remains on track, with most structural benchmarks and prior-action targets already achieved and work continuing on the remaining requirements.

The economic team is confident that the outstanding conditions will be fulfilled before the review talks begin and that Pakistan will successfully complete the next review and continue implementation of the IMF programme.