Pakistan IMF Review Talks Could Unlock $1.2 Billion in Financing

Pakistan’s ongoing negotiations with the International Monetary Fund could pave the way for approximately $1.2 billion in financing, according to reports on the review’s progress.

The discussions cover two existing arrangements: the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

Financing Under Two Programmes

Successful reviews could unlock approximately $1 billion under the EFF and another $200 million under the RSF.

The EFF is Pakistan’s 37-month, $7 billion economic reform programme, approved in September 2024. The separate $1.4 billion RSF arrangement supports reforms intended to strengthen resilience to climate-related risks.

The current mission, led by Iva Petrova, is conducting the fourth EFF review and the third RSF review.

Approval Still Required

Progress in negotiations does not mean the money has already been approved or transferred.

A successful conclusion would move Pakistan closer to the next financing stage. Release of the funds remains dependent on completion of the required review process and approval by the IMF’s Executive Board.

The immediate focus is therefore the review outcome, followed by the decisions needed to authorise disbursement.

Economic and Climate Reforms Remain Central

The economic programme supports measures to improve tax collection, strengthen power-sector finances and reform state-owned enterprises.

The climate arrangement focuses on areas including disaster preparedness, water management and incorporating climate risks into public investment decisions. Its financing is linked to reforms rather than being reserved exclusively for post-flood reconstruction.

In May 2026, the IMF completed earlier reviews and authorised approximately $1.1 billion under the EFF and $220 million under the RSF. Those were separate disbursements from the financing now under discussion.