ISLAMABAD: Pakistan-IMF talks are set to begin Wednesday as an International Monetary Fund delegation arrives in the country for discussions aimed at securing the next disbursement under the ongoing loan programme, according to Finance Ministry sources.
The negotiations will focus on Pakistan’s request for the fifth tranche of its Extended Fund Facility (EFF), while the IMF mission is also expected to conduct an Article IV review of the country’s economy.
Officials are expected to present Pakistan’s economic performance through June 2026, along with progress on structural benchmarks and broader reform commitments. The discussions will assess fiscal developments, economic policies and the government’s efforts to maintain macroeconomic stability.
Energy-sector reforms are also expected to remain a key part of the negotiations. Officials will discuss targets linked to circular debt in both the electricity and gas sectors, as well as measures aimed at improving the financial viability of the energy system.
If the review is completed successfully, Pakistan could receive up to $1.2 billion, including around $200 million under the Resilience and Sustainability Facility for climate-related initiatives.
Pakistan secured its current 37-month IMF programme in September 2024. The first tranche of about $1 billion under the EFF was released that month, followed by another disbursement of roughly $1 billion in May 2025. A third tranche was received on December 11, 2025.
The Pakistan-IMF talks come as Islamabad continues efforts to strengthen its external position, increase foreign exchange reserves, broaden the tax base and implement structural reforms.
Pakistan has had a relationship with the IMF since 1958, when it received its first loan of $25,000 under a standby arrangement. Since then, the country has entered into more than two dozen financial arrangements with the Washington-based lender.
The current $7 billion EFF, approved on September 25, 2024, is Pakistan’s 25th IMF programme since independence. The 37-month arrangement includes reforms targeting state-owned enterprises, taxation and the energy sector.
The IMF has assessed Pakistan’s debt as sustainable but has warned that the country’s economic recovery remains vulnerable to policy slippages and weaker-than-expected external financing.
