Islamabad – October 9, 2025:
The International Monetary Fund (IMF) on Thursday announced that it has made “significant progress” toward reaching a staff-level agreement (SLA) with Pakistan, following extensive talks held between September 24 and October 8.
Led by IMF mission chief Iva Petrova, discussions were conducted in Karachi and Islamabad to assess Pakistan’s implementation of the $7 billion Extended Fund Facility (EFF) and the $1.1 billion Resilience and Sustainability Facility (RSF).
According to the IMF, the performance under the reviewed period ending in June 2025 was “mixed,” although programme implementation remains strong and aligned with the government’s commitments.
Pakistan and the IMF have failed to reach a staff-level agreement as the economic review talks end without a breakthrough. Policy discussions will continue to resolve outstanding issues. #IMF #PakistanEconomy pic.twitter.com/SLlmK5jiHw
— Shakeel Ahmed (@shakeel_ahmed9) October 8, 2025
Petrova noted that progress was achieved in several key areas, including:
- Fiscal consolidation to stabilize public finances while continuing flood recovery support
- Ensuring inflation control through a tight, data-driven monetary policy led by the State Bank of Pakistan
- Reviving the energy sector by regular tariff adjustments and cost-reducing reforms
- Pushing structural reforms to reduce state involvement, improve governance, and boost private sector competitiveness
Productive talks were also held regarding climate resilience, a focus area under the RSF, with emphasis on reforms aimed at strengthening environmental sustainability.
The staff-level agreement is expected to be finalized soon, critical boosting Pakistan’s fragile economic outlook. This development comes as Prime Minister Shehbaz Sharif recently urged the IMF to consider the financial toll of climate disasters during the review process.
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