Islamabad – October 10, 2025:
Pakistan is poised to finalize a staff-level agreement (SLA) with the International Monetary Fund (IMF) during Finance Minister Muhammad Aurangzeb’s upcoming visit to Washington, as both sides work through final adjustments related to flood-related losses and external account data.
Sources confirmed that the IMF had already shared a draft Memorandum of Economic and Financial Policies (MEFP) before concluding its two-week mission in Pakistan. However, two critical financial tables in the MEFP still require adjustments based on updated remittance figures and flood impact assessments.
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
The IMF appreciated Pakistan’s programme implementation, calling it “strong and broadly aligned with commitments.” Special praise was directed at the Power Division, led by Secretary Dr. Fakhre Alam Irfan, for exceeding key performance indicators.
However, the Fund emphasized the need for timely tariff adjustments and subsidy disbursements, particularly in flood-affected districts where consumer bills were waived. Provinces must also meet cash surplus targets after flood-related fiscal adjustments.
Pakistan failed to secure IMF support again. Talks ended without a staff-level agreement, delaying $1.25 billion tranche from the $8.4 billion bailout. IMF wants verified flood losses and stronger provincial budget commitments before moving ahead : Report pic.twitter.com/nAGFvBflWi
— OsintTV 📺 (@OsintTV) October 9, 2025
To meet these goals, the government will continue its tight fiscal policy, delay non-essential development projects, and scale back revenue expectations. The FBR is preparing revised targets, with contingency measures to be implemented from January 1, 2026.
You May Also Like: Karachi at Risk: 80% of Buildings Lack Fire Safety Systems, Experts Warn of Impending Tragedy
The Pakistani delegation, including the SBP Governor and FBR Chairman, will attend the IMF-World Bank Annual Meetings this weekend. The country expects to receive $1.2 billion from the EFF and RSF facilities following board approval next month.
The IMF reiterated its commitment to working with Pakistan, noting that policy talks will continue to finalize the remaining issues and expressed sympathy for those impacted by recent floods.
