Pakistan and the International Monetary Fund are set to open formal negotiations in Islamabad for upcoming loan reviews and financial disbursements tied to a $7 billion support package. An IMF delegation already in the country has held preliminary meetings with State Bank of Pakistan officials and other relevant stakeholders in Karachi before traveling to the capital for the two-week-long talks.
Delegation Schedule and Review Focus
The upcoming discussions will encompass the fourth review of the $7 billion Extended Fund Facility and the third review of the Resilience and Sustainability Facility, alongside an Article IV consultation. According to the main report, talks are scheduled to begin on Monday, while ARY News notes that negotiations begin on Wednesday following a September 23 arrival. The comprehensive assessment will evaluate economic performance and programme performance through June 2026. Both sides will examine progress against agreed programme targets, structural benchmarks, tax reforms, fiscal and monetary issues, and specific measures relating to the power and gas sectors.
Financial Stakes and Disbursal Breakdown
Upon reaching a staff-level agreement, the package heads to the IMF Executive Board for final approval. If approved, Pakistan stands to receive approximately $1 billion under the Extended Fund Facility and $200 million under the Resilience and Sustainability Facility. ARY News characterizes the fifth installment of the loan program as amounting to $1.2 billion. Pakistan has already received $4.8 billion under the two existing programmes thus far. The overarching 37-month loan program was originally approved in September 2024, with subsequent disbursements occurring in September 2024, May 2025, and December 11, 2025.
Legislative Demands and Institutional Reforms
Ahead of the review meetings, the IMF has asked Pakistan to introduce around 174 legislative amendments under the $7 billion program. These proposed changes span taxation, energy, privatisation, the Sovereign Wealth Fund, sugar policy, Islamic banking, and fiscal consolidation. “There are 174 amendments in total which the IMF wants to get passed,” the finance secretary stated this week. Meanwhile, IMF Managing Director Kristalina Georgieva met with Prime Minister Shehbaz Sharif on the sidelines of the United Nations General Assembly during the outgoing week, commending the government’s economic stabilization efforts and noting tangible results.
Outlook and Expected Next Steps
Following the conclusion of the two weeks of formal talks in Islamabad, a successful outcome is likely to lead toward a staff-level agreement and subsequent Executive Board review. Pakistan is expected to brief the visiting team on circular debt targets in the gas and electricity sectors and report on fulfilled structural benchmarks.
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