Pakistan has started preparations for the fifth review of its Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF), with talks expected to take place next month.
A successful review could unlock around $1.2 billion in fresh financing for Pakistan, subject to approval by the IMF’s Executive Board.
According to Ministry of Finance sources, an IMF delegation is expected to visit Pakistan next month to assess the country’s progress on agreed programme targets and economic reforms.
The Finance Ministry has directed relevant ministries and government departments to prepare updated data and progress reports ahead of the IMF mission.
Officials will brief the IMF delegation on progress made toward structural benchmarks and other commitments under the ongoing programme.
Energy Sector to Remain Key Focus
Energy sector reforms are expected to remain one of the major areas of discussion during the review.
The IMF is likely to examine Pakistan’s progress in reducing circular debt in the electricity and gas sectors, along with measures taken to improve the financial sustainability of the energy sector.
Pakistan’s negotiating team will present details of reforms and steps taken to meet the commitments agreed with the Fund.
$1.2 Billion Financing Could Be Unlocked
Completion of the review could release around $1 billion under Pakistan’s existing EFF programme.
In addition, Pakistan could receive approximately $200 million through the IMF’s Resilience and Sustainability Facility (RSF), which provides financing to help countries address climate-related challenges.
If both disbursements are approved, Pakistan could receive around $1.2 billion following successful completion of the review.
Government Begins Preparations
The government has instructed all relevant ministries and departments to finalize the required information before the IMF delegation arrives.
Officials are expected to compile detailed progress reports covering economic reforms, structural benchmarks, energy-sector targets and other commitments under the programme.
The upcoming review will be closely watched as Pakistan continues efforts to stabilize its economy, strengthen public finances and meet the conditions agreed with the IMF.
