Fund to carry out the third EFF review and the second Resilience and Sustainability Facility review
Finance Minister Muhammad Aurangzeb speaks during a Reuters interview at the 2025 annual IMF/World Bank Spring Meetings in Washington, DC, US, April 25, 2025. Photo: Reuters/ File
Pakistan is well-positioned for the International Monetary Fund (IMF) review of a $1.2 billion tranche, Finance Minister Muhammad Aurangzeb said on Wednesday, as the IMF mission begun discussions in Karachi.
The staff mission will conduct the third review under the IMF’s Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), according to official statements from the IMF and Ministry of Finance. The IMF mission, led by Iva Petrova, arrived in Pakistan today and will remain until March 11 to complete the two reviews.
Successful completion of the reviews is expected to unlock approximately $1.2 billion — $1 billion from the EFF and $200 million from the RSF — by late April. “We are getting ready for the third review,” Aurangzeb said.
“It will cover both performance benchmarks and structural benchmarks, as well as a forward-looking assessment of the program.” He added that he will meet the IMF team in Islamabad for further discussions, describing them as a “meaningful conversation,” while noting it was too early to predict outcomes.
Earlier, the IMF highlighted that Pakistan’s policy measures have “helped stabilise the economy and rebuild confidence.”
Pakistan reported a primary fiscal surplus of 1.3% of GDP for FY25, in line with programme targets, while the State Bank projected inflation to remain within the 5-7% range for FY26 and FY27. Foreign exchange reserves reached $14.5 billion at the end of FY25, with a target of $18 billion by June.
Key discussion points will include circular debt management, recent electricity tariff adjustments, and implementation of the Governance and Corruption Diagnostic report and the National Fiscal Pact. Officials said the FY2026-27 federal budget framework will also be reviewed.
WB country director calls on FinMin Aurangzeb
Separately, the World Bank Country Director for Pakistan Bolormaa Amgaabazar met Aurangzeb at the Finance Division to discuss strengthening cooperation under the Bank’s Country Partnership Framework (CPF) and advancing key government reforms.
The talks covered population and human capital development, climate resilience, agriculture and energy sector reforms, and overall portfolio performance.
The Country Director of the World Bank for Pakistan, Ms. Bolormaa Amgaabazar, called on the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division today.
The meeting focused on strengthening cooperation under the World Bank’s Country… pic.twitter.com/wSPdTp1E7j
— Ministry of Finance, Government of Pakistan (@Financegovpk) February 25, 2026
Aurangzeb emphasised the importance of effective implementation of the CPF, particularly in priority areas such as population management and climate change.
Both sides discussed improving coordination between federal and provincial governments, enhancing transparency in project design, and strengthening monitoring mechanisms to achieve intended development outcomes.
The World Bank reaffirmed its commitment to collaboration with Pakistan’s federal and provincial stakeholders.
