IMF to review Pakistan bailout later 2025

New Delhi

The International Monetary Fund (IMF) is likely to conduct its next funding review for Pakistan in the second half of 2025. This review is tied to the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), according to an official IMF statement.

An IMF team, led by Nathan Porter, recently completed its visit to Pakistan. The discussions focused on the country’s recent economic changes, its upcoming 2026 budget, and the ongoing reform plans. The IMF and Pakistani authorities talked about achieving a primary budget surplus of 1.6% of GDP in the 2026 fiscal year.

Pakistan promised to cut spending where needed but still protect social welfare and key public investments. The talks also covered energy reforms aimed at lowering costs and making the power sector financially stable. Other structural reforms were also discussed to help Pakistan grow economically and create better opportunities for business and investment.

However, India has raised serious concerns. While it said it welcomes the 11 new conditions placed by the IMF on Pakistan, it questioned the timing of the recent bailout package. India believes the aid may have indirectly supported Pakistan’s growing defence expenses.

India's worry grew after its military carried out Operation Sindoor against terror camps in Pakistan and Pakistan-occupied Kashmir. India says Pakistan still allows terrorists to use its land for attacks.

Despite this, the IMF continues to work with Pakistan. The final decision on the next tranche of financial aid will depend on meeting all new conditions set by the IMF.