Pakistan, IMF set to begin economic review talks this week

The discussions for the release of the fifth tranche under Pakistan’s 37-month EFF programme are expected to continue for around two weeks, during which the IMF mission will review the

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are expected to begin talks this week on the fourth economic review under the Extended Fund Facility (EFF), with successful negotiations potentially unlocking up to $1.2 billion for the country.

The discussions for the release of the fifth tranche under Pakistan’s 37-month EFF programme are expected to continue for around two weeks, during which the IMF mission will review the country’s economic performance and progress on agreed reform targets.

Pakistani authorities are expected to brief the IMF delegation on economic developments through June, while both sides will also assess progress on structural benchmarks and other commitments under the programme.

Energy-sector reforms are likely to remain a key part of the discussions. The talks are expected to cover targets related to circular debt in the electricity and gas sectors, along with broader measures aimed at improving the financial sustainability and efficiency of the energy sector.

The two sides are also expected to examine Pakistan’s progress on structural reforms and other conditions linked to the IMF programme before determining whether the country has met the requirements for the next disbursement.

If the review is successfully completed, Pakistan could receive up to $1.2 billion. This is expected to comprise approximately $1 billion under the EFF’s fifth tranche, along with around $200 million under the climate-related financing component.

Pakistan secured the 37-month IMF programme in September 2024. The first $1 billion tranche under the EFF was received in September 2024, followed by another $1 billion disbursement in May 2025. The third tranche was released on December 11, 2025.

The upcoming review is therefore being closely watched as Pakistan seeks continued financial support while implementing economic and structural reforms agreed with the international lender.