IMF and Pakistan make significant progress on economic programme review

(Web Desk) – The International Monetary Fund (IMF) and Pakistani authorities have made notable progress toward a Staff-Level Agreement (SLA) during discussions on the first review under the 37-month Extended Fund Facility (EFF). The talks, led by IMF mission chief Nathan Porter, took place in Islamabad and Karachi from February 24 to March 14, 2025.

In his concluding statement, Porter acknowledged Pakistan’s strong implementation of the programme and highlighted key areas of progress. These include fiscal consolidation efforts to reduce public debt, maintaining a tight monetary policy to control inflation, and implementing reforms in the energy sector to enhance efficiency and cost-effectiveness. Discussions also focused on Pakistan’s structural reform agenda to accelerate economic growth while ensuring better social protection and increased investments in health and education.

The IMF team also discussed Pakistan’s climate reform initiatives, which aim to mitigate risks associated with natural disasters. These measures could be supported through a potential arrangement under the Resilience and Sustainability Facility (RSF), which provides financial assistance for climate-related challenges.