Pakistan and the International Monetary Fund (IMF) have entered the final stage of negotiations that could unlock around $1.2 billion in fresh funding. The talks are expected to conclude on October 7, with both sides working to resolve the remaining issues. However, the IMF could extend discussions if differences persist.
IMF Talks Enter Final Stage
Sources in Pakistan’s Finance Ministry said the prospects for a successful conclusion remain positive. However, the final outcome will depend on the IMF’s assessment of Pakistan’s economic performance and commitments.
The ongoing negotiations cover two IMF programs. These include the $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF).
Pakistan is undergoing its fourth EFF review and third RSF review during the latest round of talks.
$1.2 Billion Funding Could Follow
If both sides reach an agreement, they will move toward a Staff-Level Agreement (SLA). The agreement would then go to the IMF Executive Board for approval. Pakistan can receive the next installments only after the board approves the reviews.
The expected funding includes around $1 billion under the EFF. Another $200 million would come through the climate-focused RSF program.
The funding would provide additional support to Pakistan’s external financing position and economic reform program.
Pakistan Has Received $4.6 Billion
Pakistan has so far received around $4.6 billion under the two ongoing IMF programs, according to Finance Ministry sources. The latest negotiations also cover Pakistan’s progress on economic reforms and program commitments.
Recent discussions have included fiscal performance, revenue collection and reforms in the energy sector. The IMF has also focused on reducing circular debt and improving the performance of state-owned entities.
Meanwhile, Pakistan’s economic team has continued working with the Fund to finalize the remaining policy measures.
Final Outcome Depends on IMF Review
The conclusion of the talks will determine when Pakistan can submit the latest reviews to the IMF Executive Board. If the board approves the reviews, the next disbursements could follow.
For now, both sides remain focused on closing the remaining gaps. Therefore, the coming days will determine whether Pakistan secures the expected $1.2 billion under the two programs.
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