The second round of economic review talks between Pakistan and the International Monetary Fund (IMF) will take place this week in Washington, D.C., as part of Pakistan’s ongoing $3 billion loan programme. The high-stakes negotiations coincide with the annual meetings of the IMF and World Bank, scheduled from October 13 to 18.
Finance Minister Muhammad Aurangzeb, along with senior officials including the Finance Secretary and Governor of the State Bank, will lead Pakistan’s delegation. The team is expected to hold policy-level discussions with IMF officials and also meet IMF Managing Director Kristalina Georgieva, senior World Bank and IFC leaders, and global rating agencies.
Staff-Level Deal Hopes Rise
According to sources, Pakistan is aiming to secure a staff-level agreement during the upcoming talks. If successful, this would pave the way for the release of the next $1.2 billion tranche from the IMF under the Stand-By Arrangement.
The Finance Ministry is currently finalizing the delegation’s schedule, which will include addressing pending policy issues left unresolved in the previous review round held in Islamabad. That round ended without an agreement, despite what both sides called “constructive and positive” talks.
Key Reform Demands from IMF
During prior discussions, the IMF acknowledged Pakistan’s efforts in implementing reforms but demanded additional actions in areas including:
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Fiscal discipline and tighter governance
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Inflation control through continued tight monetary policy
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Energy reforms, especially reducing losses and timely tariff adjustments
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Governance and transparency, particularly regarding asset declarations by senior civil servants
The IMF also wants Pakistan to abolish tax-free car import schemes, strengthen enforcement of baggage, gift, and transfer policies, and seek ECC approval for new fiscal measures.
Sources reveal that differences remain, especially around anti-corruption efforts and legal reforms. The IMF is pushing for amendments to laws including the Civil Servants Act, Election Act, NAB Ordinance, and FIA Act to ensure transparency.
If a staff-level deal is reached, Pakistan could receive the $1.2 billion disbursement after formal approval from the IMF Executive Board later this year. The meetings will also shape Pakistan’s future engagement with global financial institutions as it looks to stabilize its economy and boost foreign investment.
