The International Monetary Fund (IMF) has reported making considerable progress in its ongoing discussions with Pakistan regarding the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF). Talks were held in Karachi, Islamabad, and virtually between February 25 and March 11, 2026, led by IMF advisor Iva Petrova.
According to the IMF, Pakistan’s implementation of the EFF program remains broadly aligned with its commitments through the end of February. The discussions focused on fiscal consolidation, monetary policy, and energy sector reforms to ensure long-term economic stability.
Petrova emphasized the importance of maintaining a tight monetary policy to keep inflation within the State Bank of Pakistan’s target range. She also highlighted the need for structural reforms to accelerate growth, improve social protection, and rebuild spending in health and education.
The IMF acknowledged Pakistan’s progress under the RSF, particularly in implementing climate resilience reforms. These efforts include completing key measures aimed at strengthening the country’s ability to withstand environmental challenges.
The talks also addressed the impact of the Middle East conflict on Pakistan’s economic outlook. Rising energy prices, volatile global financial conditions, and increased external financing needs were discussed as potential risks to the country’s balance of payments.
Petrova noted that while significant headway has been made, discussions will continue in the coming days to fully assess the implications of global developments on Pakistan’s economy. The IMF and Pakistani authorities aim to conclude the review soon.
This progress signals a positive trajectory for Pakistan’s engagement with the IMF, as the country navigates economic challenges and works toward sustainable growth through fiscal discipline and climate-focused reforms.
