Formal negotiations between Pakistan and an International Monetary Fund (IMF) staff mission have begun for two key programme reviews. The discussions cover the fourth review of the $7 billion Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF).
The IMF mission, led by Iva Petrova, is expected to remain in Pakistan until the first week of October. The talks will assess the country’s economic performance and progress under the programmes.
Pakistan Could Receive $1.2 Billion
Successful completion of the reviews could unlock around $1 billion under the EFF. Pakistan could also receive another $200 million through the RSF. Together, the two disbursements could total approximately $1.2 billion.
The funds could reach Pakistan by the end of November or early December, subject to successful completion of the reviews and subsequent approval processes.
Meanwhile, the IMF is also seeking changes to several laws as part of its ongoing programme. Finance Secretary Imdadullah Bosal recently told a parliamentary committee that around 174 amendments were under discussion.
These proposed changes cover areas including financial-sector governance, state-owned enterprises, remittances and climate-related reforms.
IMF Review to Assess Economic Reforms
Pakistan remains under a 37-month IMF programme designed to stabilise the economy.
The programme focuses on fiscal discipline, structural reforms and measures aimed at supporting sustainable economic growth.
Therefore, the latest review will examine whether Pakistan has met key programme commitments.
The IMF discussions also come as Pakistan continues efforts to strengthen revenue collection and improve governance across public institutions.
Government Clarifies PIA Aircraft Financing
Separately, the government has rejected claims that it is arranging taxpayer-funded financing or sovereign guarantees to purchase aircraft for Pakistan International Airlines (PIA).
Finance Minister’s Adviser Khurram Schehzad said the government was not buying aircraft for the privatised airline.
He also denied that Islamabad had announced a sovereign guarantee for a taxpayer-funded loan to finance the purchase.
The clarification followed a meeting between Finance Minister Muhammad Aurangzeb and US Export-Import Bank Chairman John Jovanovich during the 81st United Nations General Assembly in New York.
PIA Interested in Boeing 787 Aircraft
During the meeting, Aurangzeb discussed PIA’s interest in Boeing 787 Dreamliners.
The finance ministry said he sought support for a financing package covering aircraft and engines.
However, Schehzad explained that US Exim provides financing support to foreign buyers of US-manufactured aircraft through established structures.
He noted that aircraft financing can be secured against the aircraft itself. Credit assessments can also consider the airline, lessee or a guarantor.
As a result, he said a sovereign guarantee does not automatically apply to such financing arrangements.
Broader Pakistan-US Economic Engagement
Schehzad also stressed that the finance minister’s discussions with US Exim went beyond PIA. The talks covered potential financing opportunities in aviation, refinery upgrades and the Reko Diq mining project.
According to the adviser, the government’s role involves facilitating access to international financing, technology and suppliers rather than directly financing private commercial activity.
He also linked this approach to Pakistan’s broader push towards privatisation and greater private-sector participation.
For now, the IMF review remains the key economic development, with Pakistan seeking progress towards another $1.2 billion in external financing. At the same time, the government is clarifying that potential PIA aircraft financing would not automatically translate into a sovereign-backed taxpayer loan.
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