An official declaration has been made public concerning the discussions between Pakistan and the IMF on the economic review.
As stated on Monday, IMF Mission Chief Eva Petrova affirmed that Pakistan had made noteworthy progress in several areas, noting their implementation of the loan programme conditions as robust.
Despite these advancements, a staff-level agreement was not finalized by the close of the negotiations.
The parties resolved to pursue further policy deliberations to achieve a staff-level agreement.
The IMF mission praised the initiatives taken to stabilize Pakistan’s economy and emphasized the importance of sustaining financial discipline and supporting flood relief efforts.
A recommendation was put forth to keep a firm fiscal policy to control inflation within set ranges.
Consensus was reached on the necessity of regular tariff updates and energy sector reforms, and conversations focused on reducing government size and increasing transparency.
The statement mentioned that measures to liberalize the business and commodity sectors were contemplated, with approval expressed for Pakistan’s reform efforts concerning climate change.
The fund noted Pakistan’s significant strides towards attaining a staff-level agreement through in-depth discussions on fiscal reforms, financial stability, and enhancing economic resilience.
An IMF team visited Karachi and Islamabad from September 24 to October 8, 2025, to hold discussions on the second review of the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility.
Officials said the talks focused on assessing Pakistan’s ongoing economic reforms and the steps needed to strengthen fiscal stability and sustainability.
Pakistan and the IMF were scheduled to conclude review talks on Wednesday for the completion of the second review under the $7 billion Extended Fund Facility (EFF) and the first tranche of $400 million under the Resilience and Sustainability Facility (RSF) of $1.4 billion.
The IMF has set a deadline for obtaining approval from the Economic Coordination Committee (ECC) of the Cabinet for the abolition of two schemes and the tightening of the third one within the current month.