Pakistan expects staff-level agreement with IMF during finance minister’s US visit

Pakistani authorities are hopeful of finalising a staff-level agreement (SLA) with the International Monetary Fund (IMF) during Finance Minister Muhammad Aurangzeb’s upcoming visit to the United States, Dawn reported, citing official sources.

However, finalisation of the agreements is contingent on reaching consensus on the external account, verified flood-related losses, and their fiscal adjustment across central and provincial accounts.

The IMF had shared the draft Memorandum of Economic and Financial Policies (MEFP) with Pakistani authorities before the conclusion of a two-week mission. 

“We were at the cusp of finalising the SLA, but two crucial tables in the MEFP required further adjustments,” an official said, noting that updated foreign remittance data had strengthened Pakistan’s position on the external account.

The State Bank of Pakistan (SBP) is expected to maintain a cautious monetary policy stance due to rebounding inflation. Flood-related losses remain to be finalised and verified, officials added. 

The IMF mission acknowledged the power division’s performance, particularly crediting Secretary Dr. Fakhre Alam Irfan for exceeding most indicators, but emphasized the need for timely corrective measures, including tariff adjustments, to ensure sustainability.

The government will have to ensure timely disbursement of committed subsidies, including pending bills in flood-affected districts where consumer bills were waived or relaxed. Provinces must meet their cash surplus targets after adjusting for flood losses. Development projects in affected regions are on hold, and the Federal Board of Revenue (FBR) plans to revise its revenue collection target downward, with measures to be implemented by January 1, 2026, to address potential shortfalls.

The SLA and related decisions are expected to be finalised during the IMF-World Bank annual meetings, where the Pakistani delegation—including the finance minister, SBP governor, and FBR chairman—will participate. Officials said public debt figures, including interest rates, sukuk, and maturities, remain within targets.