IMF says it has made ‘considerable progress’ in Pakistan funding talks

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The International Monetary Fund (IMF) said that it has made “considerable progress” in talks with Pakistan over its funding facilities and that discussions will continue.

“While considerable progress was made in the discussions, these will continue in the coming days, including to more fully assess the impact of recent global developments on Pakistan’s economy and the EFF-supported (Extended Fund Facility) program,” IMF advisor Iva Petrova said in the statement.

The statement came after the federal government and IMF team, led by Petrova, held discussions on the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF) in Karachi and Islamabad, as well as virtually, from February 25 to March 11, 2026.

“Program implementation under the EFF remained broadly aligned with the authorities’ commitments through end-February 2026,” the statement read.

It added, “Considerable progress was made in the discussions on policies ahead, including on sustaining the fiscal consolidation to strengthen public finances; maintaining a sufficiently tight monetary policy to ensure inflation remains durably within the State Bank of Pakistan’s target range; and advancing reforms to improve the viability of the energy sector.”

Petrova said that particular attention was paid to deepening structural reforms, given the authorities’ emphasis on accelerating growth, alongside efforts to strengthen social protection and rebuild health and education spending.

The statement added that Pakistan has made good progress in implementing reforms to strengthen climate resilience under the RSF arrangement.

“The authorities have also made good progress in the implementation of their reform agenda to strengthen climate resilience, including through the completion of reform measures under the RSF,” the IMF advisor stated.

“Discussions also covered the impact of the conflict in the Middle East on Pakistan’s economic outlook, the balance of payments and external financing needs amid volatile and rising energy prices and tighter global financial conditions.”

The IMF said discussions between its team and Pakistani authorities will continue in the coming days with a view to concluding the review.