Islamabad, October 1, 2025 — The International Monetary Fund (IMF) has sought progress on reforms to the National Finance Commission (NFC) process, a central issue in resource distribution between the federation and provinces.
The Finance Ministry and the visiting IMF mission continued technical discussions in Islamabad under the Extended Fund Facility (EFF) — part of the ongoing second review of the $7 billion programme, alongside the first review of the Resilience and Sustainability Facility (RSF).
- Meetings covered a wide range of fiscal and macroeconomic matters, including:
- NFC reforms and fiscal framework for FY2025–26.
- Flood-related economic disruptions, inflation, and growth outlook.
- Anti-money laundering measures, with emphasis on trade-based laundering risks.
- Updates on the e-PADS procurement system and beneficial ownership registry.
- Progress on surveys including the Labour Force Survey (LFS), Household Integrated Economic Survey (HIES), and Pakistan Social and Living Standards Measurement (PSLM).
- Officials also briefed the IMF mission on:
- Development spending outlook for FY2026.
- Flood response and delegation of spending authority.
- Safeguards to protect allocations for health and education.
- Use of structural cash surpluses.
- The IMF team is expected to continue its engagements with relevant ministries and departments in the coming days before finalizing its review assessment.
- A successful review would unlock the next tranche of around $1 billion under the EFF programme — seen as vital for external financing and overall macroeconomic stability.
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