Washington, DC: An International Monetary Fund (IMF) team, led by Ms. Iva Petrova, held discussions on the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF) in Karachi and Islamabad, as well as virtually, from February 25 to March 11, 2026. At the conclusion of the discussions, Ms. Petrova issued the following statement:
"The IMF mission and the Pakistani authorities held discussions on the third review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the second review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF). While considerable progress was made in the discussions, these will continue in the coming days, including to more fully assess the impact of recent global developments on Pakistan's economy and the EFF-supported program.
"Program implementation under the EFF remained broadly aligned with the authorities' commitments through end-February 2026. Considerable progress was made in the discussions on policies ahead, including on sustaining the fiscal consolidation to strengthen public finances; maintaining a sufficiently tight monetary policy to ensure inflation remains durably within the State Bank of Pakistan's target range; and advancing reforms to improve the viability of the energy sector. Particular attention was paid to deepening structural reforms, given the authorities' emphasis on accelerating growth, alongside efforts to strengthen social protection and rebuild health and education spending. These discussions are ongoing.
"The authorities have also made good progress in the implementation of their reform agenda to strengthen climate resilience, including through the completion of reform measures under the RSF.
"Discussions also covered the impact of the conflict in the Middle East on Pakistan's economic outlook, the balance of payments and external financing needs amid volatile and rising energy prices and tighter global financial conditions.
"The IMF team and the authorities will continue these discussions with a view to conclude them in the coming days."
