ISLAMABAD – Pakistan and International Monetary Fund (IMF) failed to reach staff-level agreement despite two weeks of high-stakes virtual negotiations.
The discussions over $7 billion EFF program’s third review and the RSF’s second review ended without a formal deal, but significant progress has been made, and talks are set to continue.
The global lender stressed urgent need to keep inflation under control with a strict monetary policy, while Pakistan’s commitments on fiscal discipline remain largely on track. Key discussions included reducing the fiscal deficit, strengthening public finances, and ensuring reforms in the energy sector to improve efficiency.
IMF mission chief Iva Petrova revealed that negotiations started from February 25 to March 11, covering not only economic reforms but also crucial social sectors. Pakistan’s team discussed boosting social protection, health, and education spending, while progress on climate change reforms and the economic impact of the Middle East conflict was also reviewed.
IMF highlighted global concerns over rising energy prices and mounting financial pressure, signaling that the economic stakes remain high. Talks are expected to continue in the coming days.
If the review is finally completed successfully, Pakistan could unlock approximately $1 billion under the EFF and $200 million under the RSF by the end of April, a critical lifeline for the struggling economy.
IMF approves $1.3 Billion for Pakistan, supporting Fiscal Reforms, Growth
