Pakistan and the International Monetary Fund (IMF) have entered the final stage of negotiations over two ongoing financing programs, with a staff-level agreement expected to pave the way for around $1.2 billion in additional funding. Sources in Pakistan’s Ministry of Finance said discussions were scheduled to conclude on October 7, although negotiations could be extended if differences remained over unresolved issues between the two sides. The outcome will depend on the IMF’s assessment of Pakistan’s economic performance and progress against commitments under the programs.
The negotiations cover Pakistan’s fourth review under the $7 billion Extended Fund Facility (EFF) and the third review under the $1.4 billion Resilience and Sustainability Facility (RSF). The EFF is supporting Pakistan’s broader economic reform and stabilisation program, while the RSF provides financing linked to climate-related reforms and resilience. Completion of both reviews would allow Pakistan to access approximately $1.2 billion, comprising the fifth installment under the EFF and the next disbursement under the climate financing facility.
According to Ministry of Finance sources, prospects for successfully concluding the discussions were considered positive, although a final agreement remained dependent on the IMF’s review of the country’s economic performance and commitments. If the negotiations conclude as expected, Pakistan and the IMF would sign a Staff-Level Agreement (SLA), marking the completion of the technical-level discussions before the reviews move to the next stage of the approval process.
Following a staff-level agreement, the completed reviews will be submitted to the IMF Executive Board for consideration. The next installments would be released after the Executive Board approves the reviews. This means that even if the technical negotiations conclude successfully, the disbursement of the funds will remain subject to the formal approval process at the IMF’s board level. The timing of the eventual release will therefore depend on both the conclusion of the reviews and the subsequent board consideration.
The latest negotiations represent an important stage for Pakistan as the country continues to operate under the IMF-supported reform framework. The $7 billion EFF remains focused on maintaining macroeconomic stability and implementing structural measures, while the RSF provides an additional financing channel connected to climate-related priorities. The combined reviews allow the IMF to assess Pakistan’s progress across both economic and climate-related commitments before determining whether the associated financing can be released.
Pakistan has so far received around $4.6 billion from the IMF under the two programs, according to the Ministry of Finance sources cited in the report. The additional $1.2 billion expected from the successful completion of the latest reviews would increase the amount disbursed under the programs and provide further external financing support. The funds are also significant for Pakistan’s broader balance of payments position as the country continues working to strengthen its external accounts and maintain adequate foreign exchange liquidity.
The negotiations are taking place as Pakistan continues its efforts to consolidate economic stability following years of external financing pressures. The government has been implementing measures under the IMF program covering fiscal management, taxation, energy, state-owned enterprises and other structural areas. Progress against agreed targets remains central to the review process, with the IMF expected to assess whether Pakistan has met the required commitments before the funding can proceed to the Executive Board.
The conclusion of the latest reviews will ultimately determine both the timing and availability of the next IMF disbursements. A successful staff-level agreement would represent the completion of the technical stage, while Executive Board approval would be required before the funds are released. With approximately $1.2 billion linked to the two reviews, the outcome of the discussions remains important for Pakistan’s external financing position and the continuation of its IMF-supported economic reform program.
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