A delegation from the International Monetary Fund has arrived in Karachi to initiate engagements for the third review of Pakistan’s Extended Fund Facility programme, marking another critical milestone in the country’s ongoing macroeconomic stabilisation efforts. Finance Minister Muhammad Aurangzeb confirmed that while the delegation has landed in the provincial capital, formal negotiations are scheduled to commence in Islamabad on Monday, where discussions will focus on performance benchmarks and fiscal indicators tied to the programme.
Speaking to media representatives in the federal capital, Aurangzeb indicated that the upcoming round of talks would include a comprehensive performance review under the EFF arrangement. The review will assess Pakistan’s adherence to structural reforms and fiscal consolidation measures agreed upon with the IMF. He expressed confidence in the country’s current standing, particularly in relation to revenue mobilisation, noting that tax collection by the Federal Board of Revenue remains on track and will be a central point of discussion during the negotiations.
According to the finance minister, tax revenue performance has shown stability, positioning Pakistan in a relatively strong place as it enters the third review. The IMF team is expected to closely evaluate revenue targets, expenditure controls, and progress on policy commitments that underpin the broader economic reform agenda.
Aurangzeb also addressed concerns surrounding external financing, specifically the rollover of deposits from the United Arab Emirates. He stated that there were no complications in this regard and that Islamabad continues to maintain regular communication with the Gulf state to ensure continuity of support. The rollover of friendly-country deposits remains a key component in sustaining foreign exchange buffers while the country navigates structural adjustments.
Prior to the minister’s confirmation, sources indicated that the IMF delegation had already engaged with officials at the State Bank of Pakistan shortly after arriving in Karachi. The central bank is expected to brief the visiting team on monetary policy developments, foreign exchange reserve trends, and regulatory initiatives, including anti-money laundering and counter-terror financing frameworks. These areas form an important part of the IMF’s assessment, particularly in ensuring financial system integrity and compliance with international standards.
If the third review concludes successfully, Pakistan is anticipated to receive approximately $200 million under the Resilience and Sustainability Facility programme. The RSF, which complements the EFF, is designed to support climate-related and structural resilience reforms. This prospective disbursement would further reinforce the country’s external account position and reform momentum.
The IMF delegation’s visit comes just over two months after the global lender approved and released $1.2 billion to Pakistan under the EFF and the climate-focused RSF arrangements. On December 11, 2025, the State Bank of Pakistan confirmed receipt of the funds following approval by the IMF Executive Board. The inflows were subsequently reflected in the central bank’s foreign exchange reserves for the week ending December 12, 2025.
That disbursement followed an earlier series of review meetings held in Islamabad between September 24 and October 8, 2025, led by IMF mission chief Iva Petrova. Those discussions evaluated Pakistan’s progress across fiscal, monetary, and structural reform commitments under its ongoing economic programmes.
As the third review process unfolds, attention will remain fixed on revenue performance, financial sector oversight, and the pace of structural reforms. The outcome of the talks will not only determine the next tranche under the programme but also signal international confidence in Pakistan’s economic management trajectory.
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