The International Monetary Fund (IMF) announced on March 13, 2026, that discussions with Pakistan would continue to finalize a staff-level agreement for a $1 billion tranche. The talks have been delayed due to concerns over fiscal discrepancies in Pakistan’s budgets.
IMF Mission Chief Iva Petrova stated that while significant progress has been made, further discussions are necessary. The IMF will assess the impact of global developments on Pakistan’s economy and the Extended Fund Facility (EFF)-supported program.
Key issues include fiscal consolidation, tight monetary policy, and energy sector reforms. Concerns were raised about dividend earnings from the National Bank of Pakistan and tax targets of the Federal Board of Revenue. A technical mission is proposed to address these discrepancies.
The finance ministry reported a Rs413 billion fiscal discrepancy for the first half of the fiscal year, including Rs71 billion in federal accounts. This is attributed to increased commercial bank deposits and reporting variations among the State Bank of Pakistan, FBR, and Economic Affairs Division.
Discussions also covered the Middle East conflict’s impact on Pakistan’s economy, with volatile energy prices posing risks. However, remittances are expected to surpass targets, cushioning the external sector.
Despite global challenges, Pakistan’s inflation remains below target, and GDP growth is projected to stay within the 3.75%-4.75% range. Further talks are expected to conclude soon, focusing on structural reforms and economic growth.
Published in SouthAsianDesk, March 14, 2026
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