IMF–Pakistan talks conclude without staff-level agreement, policy discussions to continue

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) failed to reach staff-level agreement as the second biannual economic review talks ended on Thursday.

IMF has issued a statement following the conclusion of second biannual economic review talks with Pakistan.

An International Monetary Fund (IMF) team, led by Iva Petrova, visited Karachi and Islamabad from September 24 to October 8, 2025, to hold discussions on the second review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF).

According to the IMF communiqué, both sides agreed to continue policy discussions to finalize a staff-level agreement in the coming weeks.

The IMF acknowledged Pakistan’s strong implementation of the conditions under the ongoing loan program and commended the government’s efforts to stabilize the economy.

The Fund emphasized the importance of maintaining fiscal discipline while continuing support for flood-affected communities. It also recommended that Pakistan maintain a tight monetary policy to keep inflation within the targeted range.

Regarding the energy sector, the IMF noted consensus on regular tariff adjustments and structural reforms to ensure its long-term sustainability. Discussions were also held on reducing the size of state-owned enterprises (SOEs) and improving transparency and governance.

The statement added that steps to improve the business environment and liberalize commodity markets were also under review.

Talks covered Pakistan’s ongoing 37-month loan program as well as discussions on the 28-month Climate Resilience and Sustainability Facility, where the IMF expressed satisfaction with Pakistan’s progress on climate-related reforms.

IMF Mission Chief Eva Petrova appreciated Pakistan’s significant progress in several key areas and expressed sympathy for the victims of the recent floods.