Islamabad, Oct 2025 — Pakistan’s Finance Minister Muhammad Aurangzeb expressed optimism on Wednesday that discussions with the International Monetary Fund (IMF) are “moving in the right direction,” as the country seeks crucial financial support under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
An IMF mission, led by Iva Petrova, has begun formal talks with Pakistan’s economic team to review the implementation of the $7.1 billion EFF and $1.1 billion RSF programs. The mission is reviewing Pakistan’s performance up to June 2025 and assessing corrective measures needed to achieve targets for the upcoming period ending in December.
Key Highlights of IMF Talks
- Pakistan’s Federal Board of Revenue (FBR) recorded a revenue shortfall of nearly Rs198 billion in the first quarter of FY25.
- The government has set a target to raise the FBR tax-to-GDP ratio to 11% by the end of the fiscal year, despite ongoing legal cases that may impact collections.
- Power sector benchmarks for June 2025 were met, but overall revenue collection fell short by Rs1.2 trillion — nearly 1% of GDP.
Speaking to reporters after a Senate Standing Committee meeting, Aurangzeb said:
“So far, so good. Whatever discussions are happening, they are moving in the right direction.”
If the current review concludes successfully, Pakistan will be eligible for the next IMF disbursement of about $1 billion (760 million SDRs) by November 2025.
Background
Pakistan signed a three-year $7 billion IMF bailout package in July 2024 to stabilize its struggling economy, as reported by Dawn News. In May 2025, the IMF board also approved an additional $1.4 billion climate resilience loan, but its release is contingent upon successful program reviews.
The IMF mission is expected to stay in Pakistan for two weeks, engaging with key economic stakeholders, including the State Bank of Pakistan, the Finance Ministry, and the FBR.
Global & Local Impact
Analysts warn that while IMF loans provide short-term relief, Pakistan must focus on structural reforms, tax broadening, and power sector efficiency to ensure long-term economic stability.
For more details, visit Al Jazeera and The Express Tribune.
