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Business

Pakistan opens IMF talks on fourth $7bn EFF review and third climate review

Finance Minister Muhammad Aurangzeb has opened formal talks with an IMF mission in Islamabad on the fourth review of Pakistan's $7 billion Extended Fund Facility and the third review of its climate-linked Resilience and Sustainability Facility, with about $1.2 billion in disbursements at stake.

By Priya Raman · · 1 min read

Pakistan has opened formal talks with the International Monetary Fund on the next reviews of its $7 billion bailout package, with about $1.2 billion in disbursements riding on the outcome.

Finance Minister Senator Muhammad Aurangzeb held an opening meeting with the IMF mission in Islamabad on Tuesday, the Ministry of Finance said. The delegation is led by Iva Petrova, the Fund’s Pakistan mission chief, and will conduct the fourth review of the Extended Fund Facility (EFF) arrangement alongside the third review of the Resilience and Sustainability Facility (RSF), the climate-linked window.

A successful review would see IMF staff recommend to the Fund’s Executive Board the release of two tranches worth about $1.2 billion — roughly $1 billion under the EFF and $200 million under the RSF. The mission spent last week in Karachi discussing monetary policy, inflation and the exchange rate with officials of the State Bank of Pakistan, Geo News reported, citing The News.

Pakistan received $1.32 billion from the IMF in May after the Executive Board completed the third EFF review. The 37-month EFF arrangement, valued at approximately $7 billion, was approved in September 2024, with a staff-level agreement for a separate 28-month RSF arrangement of about $1.3 billion reached in March 2025. Pakistan has so far received $4.8 billion under the two arrangements.

On the revenue front, the Federal Board of Revenue has told the mission that the blockade of the Strait of Hormuz and the resulting fuel price hike cost Pakistan an estimated Rs144 billion in lost revenue, though it expects to hit its first-quarter collection target of Rs3.053 trillion by 30 September, according to the report.

Sources

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