The Fund to implement the third EFF review and the second review of the Resilience and Sustainability Facility
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 began 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 the 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 about $1.2 billion — $1 billion from the EFF and $200 million from the RSF — by the end of April. “We are getting ready for the third review,” said Aurangzeb.
“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 that it was too early to predict the results.
Earlier, the IMF highlighted that Pakistan’s policy measures have “helped to stabilize the economy and rebuild confidence.”
Pakistan reported a primary fiscal surplus of 1.3% of GDP for FY25 in line with the program target, while the State Bank expected inflation to remain within 5-7% for FY26 and FY27. Foreign exchange reserves reached $14.5 billion at the end of FY25, with a target of $18 billion in June.
Key discussion points will include circular debt management, recent electricity tariff adjustments and the implementation of the Governance and Corruption Diagnostic report and the National Fiscal Compact. Officials said the FY2026-27 federal budget framework will also be revised.
WB country director urges FinMin Aurangzeb
Separately, World Bank Country Director for Pakistan Bolormaa Amgaabazar met Aurangzeb in the Finance Department 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, agricultural and energy sector reforms and overall portfolio performance.
The Country Director of the World Bank for Pakistan, Ms. Bolormaa Amgaabazar, urged the Federal Minister for Finance and Excise, Senator Muhammad Aurangzeb, in the Finance Department today.
The meeting focused on strengthening cooperation under the World Bank’s country… pic.twitter.com/wSPdTp1E7j
— Ministry of Finance, Government of Pakistan (@Financegovpk) 25 February 2026
Aurangzeb emphasized the importance of effective implementation of the CPF, especially in priority areas such as population management and climate change.
Both sides discussed improving coordination between federal and provincial governments, increasing transparency in project design and strengthening monitoring mechanisms to achieve intended development outcomes.
The World Bank reaffirmed its commitment to working with Pakistan’s federal and provincial stakeholders.
