Finance Minister Muhammad Aurangzeb holds an initial meeting with the IMF mission led by Iva Petrova as Pakistan enters the latest review phase of its economic programme.
ISLAMABAD, September 29, 2026: Pakistan and the International Monetary Fund (IMF) have formally opened discussions on the latest reviews of the country’s economic programme, with Finance Minister Senator Muhammad Aurangzeb holding an initial meeting with the Fund’s visiting mission on Tuesday.
The IMF delegation, led by Iva Petrova, is in Islamabad for the fourth review of Pakistan’s Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF).
The initial session focused on Pakistan’s progress in meeting programme commitments, implementing policy measures and issues expected to arise during the latest reviews.
Minister of State for Finance and Revenue Bilal Azhar Kayani, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial and senior Finance Ministry officials also participated in the meeting.
Pakistan enters fourth EFF review
Pakistan’s 37-month EFF arrangement was approved in September 2024 and is designed to strengthen macroeconomic stability, rebuild external buffers and support structural reforms.
The programme covers fiscal management, revenue mobilisation, energy-sector reforms, state-owned enterprises and measures aimed at improving productivity and competitiveness.
According to the IMF’s latest published programme documents, the fourth EFF review was scheduled for September 2026 and is linked to an EFF purchase of SDR760 million, subject to the completion of the review and fulfilment of the relevant programme conditions.
The previous IMF review, completed in May 2026, allowed Pakistan to draw about US$1.1 billion under the EFF and around US$220 million under the RSF.
RSF review focuses on climate resilience
Alongside the EFF assessment, the IMF mission is conducting the third review of the RSF arrangement, which addresses longer-term vulnerabilities arising from climate change and natural disasters.
The RSF reform agenda includes climate considerations in public investment and budgeting, disaster-risk financing, climate-related financial risks and improvements to institutional capacity.
The IMF’s programme documents list several climate-related reform measures associated with the latest review, including strengthening coordination on disaster-risk financing between federal and provincial authorities and incorporating climate considerations into infrastructure investment planning.
IMF assesses recovery amid external risks
The IMF’s most recent comprehensive assessment said Pakistan’s economic recovery had gained momentum during the first half of fiscal year 2026, while inflation remained relatively contained, the current account was broadly balanced and reserve rebuilding exceeded earlier projections.
However, the Fund also highlighted uncertainty arising from the conflict in the Middle East and its potential effects on inflation, economic growth, the balance of payments and external financing conditions.
In its March 2026 review discussions, the IMF specifically noted that volatile and rising energy prices and tighter global financial conditions could affect Pakistan’s economic outlook and external financing needs.
Fiscal and energy reforms remain key areas
The latest discussions are expected to examine Pakistan’s fiscal performance, tax mobilisation, energy-sector reforms and other structural commitments under the EFF.
The government and IMF mission will also assess progress under the RSF, including measures designed to strengthen Pakistan’s resilience to climate-related risks.
The outcome of the reviews will depend on Pakistan’s performance against agreed programme targets and the implementation of required reforms.
The latest talks mark another stage in Pakistan’s ongoing engagement with the Fund as authorities work towards completion of the fourth EFF and third RSF reviews.