The International Monetary Fund (IMF) announced significant progress in its funding discussions with Pakistan, held from February 25 to March 11, 2026, in Karachi and Islamabad. The talks, led by IMF advisor Iva Petrova, aimed to review the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
Petrova stated that while considerable progress was made, discussions would continue to assess the impact of recent global developments on Pakistan’s economy. The focus remained on sustaining fiscal consolidation, maintaining a tight monetary policy, and advancing energy sector reforms.
The IMF emphasized the importance of deepening structural reforms to accelerate growth and strengthen social protection. The discussions also highlighted Pakistan’s progress in implementing climate resilience reforms under the RSF.
The talks also covered the economic implications of the Middle East conflict, particularly concerning Pakistan’s balance of payments and energy prices. The IMF and Pakistani authorities are set to continue discussions to finalize the review.
Published in SouthAsianDesk, March 12, 2026
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