Preparations are underway for the next review of the economic program between Pakistan and the International Monetary Fund (IMF). The IMF mission will arrive in Pakistan on September 23 and will review the economic performance till June 2026.
According to sources, the mission’s visit will last for about two weeks and the talks are likely to continue till the first week of October. The review will be under the IMF’s $7 billion Extended Fund Facility (EFF) program. Along with this, progress will also be seen on the $1.4 billion Resilience and Sustainability Facility (RSF) program.
The scope of the talks will not be limited to the performance of the last fiscal year. The parties will also discuss the implementation mechanism of the program and new fiscal policies in the coming months.
According to sources, technical issues will be discussed in the initial phase. This will be followed by meetings with officials from the Ministry of Finance and other relevant government agencies. The IMF mission will be led by Iva Petrova.
Tax collection will also be an important part of the review. The IMF will also review the FBR’s performance until June 2026, as well as the revenue collection strategy for the new fiscal year. According to the recent government stance, FBR’s collections in July and August were on target, but the targets for the coming months will also be important in the negotiations.
The energy sector will also feature prominently in the talks. In particular, progress on the financial sustainability of the power sector, circular debt and reform measures will be seen.
The overall performance of the program will also be discussed at the end of June 2026. According to the IMF, Pakistan’s policy implementation was described as overall strong in the previous review, while it is necessary to continue reforms in the next phase.
This is the fourth review of the EFF according to the IMF’s current schedule. The third review of the RSF is also expected along with it. If the review is completed, Pakistan may be eligible for the next financial assistance, however, the disbursement of funds will be subject to the completion of the relevant review and the IMF’s approval process.
For Pakistan, these talks are taking place at a time when the government needs to focus on increasing tax collection, advancing energy sector reforms and maintaining fiscal discipline. The results of the talks will be important for the direction of economic policy and program implementation in the coming months.
