An International Monetary Fund (IMF) review mission is holding discussions with Pakistani authorities in Karachi as part of the fourth review of Pakistan’s Extended Fund Facility (EFF) programme.
The second round of talks between the IMF mission and the State Bank of Pakistan (SBP) was held on Thursday, with SBP Governor Jameel Ahmad and senior officials briefing the visiting delegation on key economic indicators and challenges.
The discussions are focused on assessing Pakistan’s economic performance and progress under the IMF programme.
SBP Briefs IMF on Key Economic Indicators
According to officials, the SBP briefed the IMF delegation on several major areas of Pakistan’s economy.
The discussions covered monetary policy, economic growth, inflation and remittances, along with developments in other key economic indicators.
The two sides also discussed Pakistan’s foreign exchange reserves, imports, exchange rate and current account position.
These indicators are important components of the IMF’s assessment of Pakistan’s economic performance under the EFF programme.
The first round of discussions between the SBP and the IMF mission was held in Karachi on Wednesday, followed by the second round on Thursday.
IMF Reviews Pakistan’s EFF Progress
The ongoing discussions form part of the IMF’s fourth review of Pakistan’s 37-month EFF arrangement.
The IMF’s published programme schedule identifies September 2026 as the date for the fourth review, with an EFF purchase of SDR 760 million scheduled under the programme, subject to the required conditions and review process.
Pakistan’s EFF arrangement was approved in September 2024 and is designed to support macroeconomic stability and structural reforms.
The IMF Executive Board completed Pakistan’s third EFF review in May 2026, allowing the country to draw approximately $1.1 billion under the facility.
Finance Ministry Talks Scheduled
Following the discussions with the central bank, the IMF delegation is scheduled to hold technical-level talks with officials of the Ministry of Finance in Islamabad on Friday.
The discussions with the Finance Ministry are expected to focus on broader fiscal and structural issues under the programme.
The IMF review involves assessment of Pakistan’s performance against agreed targets and commitments, with different government institutions participating in discussions relevant to their respective areas.
Gas Sector Issues Under Discussion
According to sources cited in the report, the IMF has also raised concerns about Pakistan’s gas sector circular debt and pricing mechanisms.
The energy sector remains an important part of Pakistan’s reform programme, with the IMF having previously highlighted the need to improve the financial viability of the energy sector.
In its May 2026 review, the IMF said Pakistan’s reform priorities included restoring energy-sector viability alongside strengthening public finances, improving competition and reforming state-owned enterprises.
The gas sector discussions therefore form part of broader efforts to address structural economic challenges.
Next EFF Disbursement Depends on Review
Completion of the fourth review would pave the way for the next EFF disbursement, subject to the IMF’s assessment and approval process.
The scheduled EFF purchase for the fourth review is SDR 760 million, according to the IMF’s published programme documents.
The amount is equivalent to roughly $1.1 billion based on the valuation cited in the original report, although the exact dollar value can vary with exchange rates.
The disbursement will not be automatic. Pakistan must first complete the review process and meet the applicable programme conditions before the IMF Executive Board considers the next purchase.
Pakistan’s Economic Performance Under Review
The IMF and SBP discussions come as Pakistan continues efforts to maintain economic stability and rebuild external buffers.
The IMF said after its third review that Pakistan’s programme had supported progress in macroeconomic stabilisation and rebuilding confidence, while also stressing continued reforms in areas including public finances, competition, productivity, state-owned enterprises and the energy sector.
The central bank’s discussions with the IMF are therefore important for assessing developments in monetary policy, inflation, foreign exchange and external-sector indicators.
The review also provides an opportunity for the IMF to examine challenges that could affect Pakistan’s economic targets in the months ahead.
IMF Review Continues in Pakistan
The second round of talks between the IMF and SBP has now concluded as part of the broader fourth EFF review, while discussions with the Finance Ministry are scheduled to continue in Islamabad.
The talks cover a wide range of economic indicators, including inflation, growth, remittances, reserves, imports, exchange rates and the current account.
Structural issues, including concerns related to the gas sector’s circular debt and pricing system, are also part of the discussions reported during the review.
The outcome of the fourth review will determine whether Pakistan meets the requirements for the next scheduled EFF purchase of SDR 760 million.
For now, the IMF mission’s discussions with the SBP and Finance Ministry remain part of the ongoing assessment process, with any new disbursement dependent on completion of the review and the IMF’s subsequent approval.
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