Pakistan’s Third IMF Economic Review Mission Begins February 25

An International Monetary Fund (IMF) mission will arrive in Pakistan on February 25 for the third economic review talks. The 15-day visit aims to assess Pakistan’s economic performance from July to December 2025. Officials hope the review could unlock $1.2 billion in fresh funding under the ongoing loan program. The talks are part of Pakistan’s $7 billion Extended Fund Facility (EFF) program. Success in negotiations requires IMF Executive Board approval.

During the mission, IMF officials will meet with the Ministry of Finance, the State Bank of Pakistan, and the Federal Board of Revenue (FBR). They will also engage with other relevant ministries and institutions. The delegation will review progress on agreed reform targets, including fiscal, monetary, and structural measures. The visit is a key step to evaluate Pakistan’s macroeconomic policies. The government plans to present updates on policy reforms and economic performance.

The IMF review will cover key economic reforms, such as taxation measures, energy sector restructuring, and monetary policy. Officials will also brief the delegation on foreign exchange reserves and privatization programs. This includes updates on Pakistan International Airlines (PIA) and the transfer of the Tax Policy Office to the Ministry of Finance. Budget-related reforms and other structural changes will also be discussed. The mission will assess whether Pakistan is meeting its commitments under the EFF program.

Read more : Government Introduces New System After IMF Commitment Fulfilled

So far, Pakistan has achieved several fiscal benchmarks, including a primary budget surplus and provincial cash surpluses. Provincial tax targets have also been largely met. However, federal tax collections fell short of targets during the first six months. The FBR collected Rs6,161 billion in taxes, missing the target by Rs339 billion. Revenue collection under trader-friendly schemes and from retailers also remained below expectations.

Pakistan has already received $3.3 billion under the EFF and climate financing arrangements. If the third review is successful, $1.2 billion will be disbursed, including $1 billion under the EFF and $200 million for climate financing. An additional $3.7 billion is scheduled in six-monthly installments through 2027, subject to IMF approval. Officials stress that meeting conditions and reform targets is critical for future disbursements. The IMF mission will play a crucial role in determining Pakistan’s next funding tranche.