February 21, 2025 – The International Monetary Fund (IMF) has confirmed that its staff team will visit Pakistan in early to mid-March to conduct the first review of the country’s Extended Fund Facility (EFF) program. This visit will be a crucial milestone for the nation’s ongoing financial partnership with the IMF, as both parties evaluate the progress of the program and discuss key aspects of economic reform and support.
As part of the visit, the IMF team will hold discussions surrounding Pakistan’s request for additional assistance under a Resilience and Sustainability Facility (RSF) arrangement. The RSF, a relatively new financial mechanism, is designed to support countries in addressing long-term challenges such as climate change and sustainable development. Pakistan has expressed its interest in securing assistance under this arrangement, particularly in relation to enhancing the country’s resilience to climate-related risks.
A technical team from the IMF is expected to arrive in Pakistan in late February ahead of the main delegation’s visit. This group will focus on resolving technical issues concerning the potential RSF arrangement, offering guidance on how Pakistan can align its national policies with the objectives of this facility. The technical team will assess various aspects of the country’s resilience to environmental challenges and advise on steps that can be taken to secure future support under the facility.
The upcoming visit also highlights Pakistan’s ongoing efforts to secure climate financing from international institutions, with the IMF delegation set to discuss the country’s request for funding to support climate change mitigation and adaptation measures. Pakistan, which is one of the countries most vulnerable to the effects of climate change, is looking for financial backing to invest in initiatives that can help reduce environmental risks and improve its capacity to manage natural disasters.
This visit by the IMF team comes at a critical time for Pakistan, as the country is working to stabilize its economy and implement necessary structural reforms under the Extended Fund Facility. The IMF has been a key partner in helping Pakistan navigate its financial challenges, providing much-needed support for economic stabilization, fiscal reforms, and debt sustainability. The first review of the EFF program is an important step in evaluating the progress made so far and determining whether the country is on track to meet its fiscal and economic targets.
The IMF’s engagement with Pakistan is a vital aspect of the nation’s efforts to achieve long-term economic stability and growth. By securing funding through the Extended Fund Facility and potentially through the Resilience and Sustainability Facility, Pakistan hopes to address critical challenges such as fiscal deficits, debt management, and climate resilience.
In summary, the visit of the IMF team in March will play a pivotal role in shaping Pakistan’s financial future. The review of the EFF program, along with discussions on the RSF and climate financing, will help chart a course for the country’s economic recovery and sustainability. The IMF’s technical team will also provide important insights into how Pakistan can improve its climate resilience and secure future support for climate-related initiatives.