Pakistan and the International Monetary Fund (IMF) concluded their second biannual economic review talks on Thursday without reaching a staff-level agreement, though both sides pledged to continue discussions in the coming weeks.
An IMF delegation led by Iva Petrova visited Karachi and Islamabad from September 24 to October 8, 2025, for the second review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF).
In a statement issued after the talks, the IMF commended Pakistan for its strong implementation of program conditions and efforts to stabilize the economy, while stressing that further discussions were needed to finalize the agreement.
The Fund urged Pakistan to maintain fiscal discipline and sustain support for flood-affected communities. It also called for a tight monetary policy to keep inflation within targeted limits.
On the energy sector, both sides reportedly agreed on the need for regular tariff adjustments and structural reforms to ensure long-term financial sustainability. The IMF also emphasized reducing the footprint of state-owned enterprises (SOEs) and enhancing transparency and governance.
Discussions additionally focused on improving the business environment, liberalizing commodity markets, and advancing climate-related reforms under the 28-month Climate Resilience and Sustainability Facility (RSF).
The IMF expressed satisfaction with Pakistan’s progress in climate resilience efforts and acknowledged the government’s commitment to economic stability.
IMF Mission Chief Iva Petrova lauded Pakistan’s progress in several key areas and conveyed sympathy for the victims of recent floods, reaffirming the Fund’s readiness to continue cooperation.
