Finance Minister Muhammad Aurangzeb announced that Pakistan expects to finalize a staff-level agreement (SLA) with the International Monetary Fund (IMF) this week, securing a $1.24 billion payout as part of the ongoing loan programme.
The deal will mark the completion of the second review of the $7 billion Extended Fund Facility (EFF) and the first under the $1.4 billion Resilience and Sustainability Facility (RSF), both aimed at stabilizing Pakistan’s economy following a severe financial crisis.
Speaking to Reuters on the sidelines of the IMF-World Bank annual meetings in Washington, Aurangzeb said the talks had been “constructive,” covering quantitative and structural benchmarks. He expressed optimism that the agreement would be reached within the week, unlocking the next tranche of IMF funding.
The IMF programme, renewed in 2024, helped Pakistan recover from record inflation, a steep currency depreciation, and a growing fiscal deficit.
Aurangzeb revealed that Pakistan plans to issue its first green Panda bond — denominated in Chinese yuan — by the end of the year and return to international markets in 2026 with a bond sale of at least $1 billion.
On the domestic front, the finance minister said the government’s privatisation drive would gain momentum in the current fiscal year. He confirmed progress on selling three power distribution companies and Pakistan International Airlines (PIA), noting that improved access to European routes had renewed investor interest. Final bids are expected later this year.
During his visit, Aurangzeb met IMF regional head Jihad Azour, World Bank’s Axel van Trotsenburg, and US Treasury officials to discuss Pakistan’s economic reforms and investment prospects. He reaffirmed Pakistan’s commitment to maintaining macroeconomic discipline, advancing privatisation, and strengthening cooperation with international partners.
