IMF Reviews Pakistan
ISLAMABAD
The International Monetary Fund (IMF) on Tuesday launched a formal review of Pakistan’s $7 billion Extended Financing Facility (EFF) and the $1.1 billion Resilience and Sustainability Facility (RSF), amid concerns over missed fiscal targets and sluggish revenue growth.
The IMF mission, which will remain in Pakistan for nearly two weeks, held its opening session with Finance Minister Muhammad Aurangzeb. The meeting was also attended by the State Bank governor, the finance secretary, and the chairman of the Federal Board of Revenue (FBR). Discussions are expected to focus on corrective measures required to bring Pakistan back on track to meet its biannual programme goals ending in December 2025.
According to officials, Pakistan’s performance under the programme up to June 2025 has been uneven. While power sector reforms met their prescribed benchmarks, tax revenues fell short by approximately Rs 1.2 trillion—nearly 1% of GDP—in the last fiscal year. The first two months of the current financial year have shown similar shortfalls, raising concerns about fiscal discipline.
Alongside programme compliance, Pakistan is seeking IMF’s backing to revive the long-stalled brownfield petroleum refinery policy. The plan, worth around $6 billion in investment, aims to upgrade outdated refineries to produce fuels that meet European standards with lower sulphur and carbon emissions. Authorities argue that the initiative aligns with the RSF’s sustainability objectives, reducing environmental impact while attracting foreign investment. The IMF mission is also expected to hold forward-looking talks with Pakistani authorities, pushing for accelerated implementation of reforms to stabilise the economy and ensure sustainable growth.