Pakistan has started preparations for the fifth review of its Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF).
The review talks are expected next month and could potentially unlock around $1.2 billion in fresh financing for Pakistan.
According to Ministry of Finance sources, an IMF delegation is expected to visit Pakistan next month to assess progress under the ongoing programme.
The government has already begun preparations, with the Finance Ministry directing relevant ministries and departments to compile updated data and progress reports.
Officials will brief the visiting IMF team on progress against structural benchmarks and other economic reform commitments agreed under the programme.
Energy Reforms Set to Take Centre Stage
Energy sector reforms are expected to remain a major focus during the upcoming IMF review, particularly commitments linked to circular debt.
The discussions are likely to cover circular debt in both the electricity and gas sectors, as Pakistan works to meet targets under the programme.
Pakistan’s negotiating team will present details of measures taken to improve the energy sector and fulfil commitments agreed with the IMF.
Therefore, the government has asked relevant ministries to complete their required data and reports before the IMF mission arrives.
$1.2 Billion Financing in Focus
Successful completion of the IMF review could unlock around $1 billion under Pakistan’s existing EFF programme.
However, the release would remain subject to approval by the IMF Executive Board following completion of the review process.
Pakistan could also receive another $200 million through the Resilience and Sustainability Facility (RSF).
The facility provides financing to help countries address climate-related challenges and strengthen their resilience.
If Pakistan successfully completes the review and receives the Fund’s approval, the combined disbursement could reach approximately $1.2 billion.
Government Steps Up Preparations
The upcoming review has prompted the government to accelerate preparations across relevant ministries and departments.
Officials have been instructed to finalize updated information, progress reports and other required data before the IMF delegation arrives.
The material will help Pakistan demonstrate progress on structural benchmarks and broader economic reform commitments under the EFF programme.
Meanwhile, the energy sector is expected to receive particular attention because of commitments concerning electricity and gas sector circular debt.
For now, the government is focused on completing preparations for the IMF mission and presenting progress made under the ongoing programme.
The outcome of the review could determine whether Pakistan secures the expected financing from the EFF and the Resilience and Sustainability Facility.
