Pakistan is well-positioned for the International Monetary Fund (IMF) review of a $1.2 billion tranche, Finance Minister Muhammad Aurangzeb said Wednesday, as the IMF mission began discussions in Karachi. The mission, led by Iva Petrova, will conduct the third review under the IMF’s Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF) until March 11.
Successful completion of the reviews is expected to unlock roughly $1 billion from the EFF and $200 million from the RSF by late April. Aurangzeb said the review will cover performance and structural benchmarks, along with a forward-looking assessment of Pakistan’s economic program. He described upcoming discussions in Islamabad as “meaningful conversations,” while noting it was too early to predict outcomes.
Read more: IMF mission begins crucial economic review in Pakistan
The IMF previously highlighted that Pakistan’s policy measures have “helped stabilize the economy and rebuild confidence.” Pakistan reported a primary fiscal surplus of 1.3% of GDP for FY25, maintained inflation projections of 5-7% for FY26–27, and ended FY25 with $14.5 billion in foreign exchange reserves, targeting $18 billion by June. Key discussion points will include circular debt management, electricity tariff adjustments, and implementation of the Governance and Corruption Diagnostic report and National Fiscal Pact.
Separately, World Bank Country Director for Pakistan Bolormaa Amgaabazar met Aurangzeb to discuss strengthening cooperation under the Bank’s Country Partnership Framework (CPF) and advancing key government reforms. Talks focused on population and human capital development, climate resilience, agriculture and energy sector reforms, and portfolio performance.
Read more: IMF lauds Pakistan’s reforms, eyes Feb 25 visit for next review
Aurangzeb stressed the importance of effective implementation of the CPF, particularly in population management and climate change. Both sides discussed improving coordination between federal and provincial governments, enhancing transparency in project design, and strengthening monitoring mechanisms. The World Bank reaffirmed its commitment to collaboration with Pakistan’s federal and provincial stakeholders.