Key Takeaways
- Finance Minister Muhammad Aurangzeb met with the IMF mission in Islamabad.
- The talks are part of the fourth review of Pakistan’s Extended Fund Facility and the third review of the Resilience and Sustainability Facility.
- Pakistan has received $4.8 billion under the two IMF programs so far.
Finance Minister Muhammad Aurangzeb initiated discussions with the International Monetary Fund (IMF) mission in Islamabad on Thursday. The meeting, led by Iva Petrova, marks the beginning of reviews under Pakistan’s $7 billion Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
The IMF mission is currently in Pakistan for the fourth review of the EFF and the third review of the RSF. These programs are crucial for Pakistan’s economic stability and recovery.
Last week, an IMF staff mission arrived in Pakistan to begin negotiations. The government provided an update on the economic impact of the Gulf War and disruption in the Strait of Hormuz, which have caused revenue losses in the first quarter and slowed economic activities.
Additionally, the government informed the IMF mission that 10,000 federal government employees will be required to digitally declare their movable and immovable assets by October 30, 2026, as part of a mandatory asset declaration regime.
Pakistan’s ongoing IMF programs include an Extended Arrangement under the EFF, approved by the IMF’s Executive Board in September 2024, and an RSF arrangement, for which a staff-level agreement was reached on March 25, 2025.
The EFF is a 37-month bailout program valued at approximately $7 billion (SDR 5,320 million), while the RSF is a 28-month arrangement totalling about $1.3 billion.
After reaching a staff-level agreement (SLA) on the fourth review under the EFF and the third review under the RSF, the agreement will be subject to approval by the IMF’s Executive Board. Upon approval, Pakistan will have access to about $1 billion under the EFF and $200 million under the RSF.
Pakistan has already received $4.8 billion under the two arrangements, highlighting the importance of these programs for the country’s economic recovery.
