Pakistan, IMF Talks to Begin on Sept 23 Over 5th Loan Tranche
ISLAMABAD: The International Monetary Fund (IMF) delegation will arrive in Pakistan on September 23 for the latest review of the country’s economic performance and progress on agreed reform measures.
According to sources in the Ministry of Finance, Pakistan and the IMF will begin review talks on Wednesday with discussions expected to focus on the release of the fifth tranche under the country’s ongoing Extended Fund Facility (EFF) programme.
Pakistan has completed preparations for the talks, during which officials will brief the IMF on the country’s economic performance through June 2026.
Focus on economic reforms and structural benchmarks
The discussions are expected to cover Pakistan’s progress on structural benchmarks agreed under the IMF programme, as well as targets related to broader economic reforms.
Officials will also hold discussions with the IMF on reforms in the energy sector, with particular focus on the financial position of the power and gas sectors.
The issue of circular debt in the electricity and gas sectors is also expected to feature prominently during the review. Pakistan will brief the IMF on measures taken to control the accumulation of circular debt and meet agreed targets.
The two sides are also expected to discuss the government’s progress on fiscal and structural reforms and the measures being taken to strengthen the country’s economic framework.
Around $1.2 billion financing expected
According to Ministry of Finance sources, successful completion of the review could pave the way for Pakistan to receive around $1 billion under the fifth tranche of the existing EFF programme. In addition, Pakistan could receive approximately $200 million in climate-related financing aimed at helping the country address the economic impact of climate change.
The combined financing could, therefore, amount to around $1.2 billion, subject to the successful completion of the IMF review and fulfilment of the agreed programme conditions.
Pakistan’s current IMF programme
Pakistan secured its current 37-month IMF programme in September 2024 to support economic stabilization and strengthen its external and fiscal position.
Under the EFF programme, Pakistan received its first tranche of approximately $1 billion in September 2024. The country received the second tranche of around $1 billion in May 2025, followed by the third tranche of approximately $1 billion on December 11, 2025.
The upcoming review will assess Pakistan’s performance against the programme’s agreed targets and benchmarks through June 2026.
The outcome of the talks will determine whether Pakistan meets the conditions required for the next disbursement under the programme. Further discussions are also expected to cover the pace of structural reforms, particularly in the energy sector, as Pakistan continues efforts to address longstanding fiscal and financial challenges.
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