Pakistan well-positioned ahead of IMF review mission: Finance minister

ISLAMABAD: Pakistan faces a crucial International Monetary Fund (IMF) review this week that is expected to release $1.2 billion in funding. Officials say the country is prepared and on track to meet its program goals.

Speaking to Pakistan TV Digital, Federal Minister for Finance and Revenue Muhammad Aurangzeb said the IMF team has already started its mission in Karachi to hold talks with the State Bank. He will then meet the team in Islamabad on Monday.

“We are getting ready for the third review,” Aurangzeb said. “It will cover both performance benchmarks and structural benchmarks, as well as a forward-looking assessment of the program.”

Aurangzeb said that Pakistan looks forward to a "meaningful conversation." While it is too early to predict outcomes before formal discussions conclude, the country is well-positioned for the review, he noted. 

Stable economy
The IMF mission, led by Iva Petrova, arrived in Pakistan on Wednesday. Officials said the mission will stay until March 11 to finish two reviews.

As per official reports from the IMF and Pakistan’s Ministry of Finance, the staff mission will conduct the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).

Successful completion of these reviews is expected to unlock approximately $1.2 billion — $1 billion from the EFF and $200 million from the RSF — by late April.

According to the IMF, Pakistan’s policy efforts have “helped stabilize the economy and rebuild confidence.”

Positive outlook
The IMF confirmed a primary fiscal surplus of 1.3% of GDP for FY25, aligning with program targets. The State Bank of Pakistan reported that inflation is projected to remain within the 5-7% target range for FY26 and FY27, and that foreign exchange reserves reached $14.5 billion at the end of FY25, with a target of $18 billion by June this year.

The IMF mission will also examine key challenges, including “circular debt” management and recent adjustments to electricity tariffs in the energy sector, according to official reports.

Implementation of the Governance and Corruption Diagnostic report and the National Fiscal Pact are among the top governance agenda items. Discussions will also include the framework for the FY2026-27 federal budget, as per the Ministry of Finance.