An International Monetary Fund mission will arrive in Pakistan on September 23 to review the country’s economic performance and progress on major reform commitments.
The review will cover Pakistan’s $7 billion Extended Fund Facility and the $1.4 billion Resilience and Sustainability Facility.
The assessment will focus on economic performance during the period ending June 30, 2026.
Pakistan is currently operating under a 37-month IMF programme worth $7 billion. The programme aims to strengthen fiscal stability, improve economic management and support sustainable growth.
Official sources said the IMF team will remain in Pakistan for almost two weeks. The visit is expected to conclude during the first week of October.
The mission will be led by Iva Petrova.
It will conduct the fourth review of the Extended Fund Facility and the third review of the Resilience and Sustainability Facility.
Revenue Performance and Fiscal Targets Under IMF Scrutiny
The IMF mission is expected to begin technical discussions at the State Bank of Pakistan.
The team will later meet government officials and representatives from different economic sectors.
A formal meeting with Finance Minister Muhammad Aurangzeb is also expected during the visit.
Revenue collection will be one of the major areas under review.
The Federal Board of Revenue will face close scrutiny over its ability to meet the first half-yearly revenue collection structural benchmark introduced under the IMF programme.
Pakistan has repeatedly faced significant annual revenue collection shortfalls.
The IMF will assess whether the FBR has introduced sufficient measures to meet its latest targets.
Fiscal performance until the end of June 2026 has reportedly remained largely on track.
However, major revenue shortfalls and delays in implementing some policy commitments remain important concerns.
The review will also examine government involvement in commodity markets.
Pakistan had agreed under the IMF programme to limit official intervention in sectors including wheat and sugar.
However, government involvement in commodity operations has raised concerns over compliance with agreed programme conditions.
Governance Reforms and Provincial Finances Face Tough Review
The upcoming assessment will be the first IMF review since provincial governments surrendered more than Rs1.035 trillion from their National Finance Commission shares to the federal government.
The funds were allocated for national security and water resource requirements during the current fiscal year.
This amount is separate from approximately Rs1.8 trillion in provincial cash surpluses committed under the IMF-backed economic framework.
The IMF mission will assess both previous performance and Pakistan’s plans for meeting future programme conditions.
Economic governance reforms are expected to remain a major area of concern.
Official reports indicate that Pakistan has fallen behind on several governance-related commitments.
Only a small number of more than three dozen governance targets scheduled for the January to June 2026 period were reportedly completed.
These targets followed an IMF governance and corruption diagnostic assessment that identified significant weaknesses in Pakistan’s anti-corruption and governance systems.
The government has introduced measures aimed at improving transparency in procurement involving state-owned enterprises.
However, concerns remain over direct contracts being awarded to state-owned entities without competitive bidding.
There have also been reports of tenders being issued after projects were already completed through selected contractors.
Such practices have raised concerns about transparency, competition and value for public money.
Rules designed to prevent preferential contracting have yet to receive final approval.
Pakistan Could Receive $1.2 Billion After Successful Review
The financial outcome of the review will be closely watched by markets and policymakers.
If Pakistan successfully completes both reviews, it could become eligible for approximately $1 billion under the Extended Fund Facility.
The amount is equivalent to around 760 million Special Drawing Rights.
Pakistan could also receive another $200 million under the Resilience and Sustainability Facility.
The combined disbursement could therefore reach approximately $1.2 billion.
The funds could be released by the end of November or early December if the IMF Executive Board approves the reviews.
The assessment will also examine Pakistan’s monetary policies, fiscal discipline and implementation of structural reforms.
While several quantitative targets have reportedly remained on track, delays in governance reforms could become a major issue during negotiations.
The IMF had earlier acknowledged progress made under Pakistan’s economic programme.
In July, IMF Resident Representative for Pakistan Mahir Binici described the country’s performance under the 2024 Extended Fund Facility as strong so far.
However, the September review will determine whether Pakistan has maintained that momentum while addressing revenue, governance and structural reform challenges.
Successful completion would provide Pakistan with additional external financing and signal continued IMF support for the government’s economic reform programme.
