Pakistan-IMF talks to begin Sept 23 for up to $1.2bn
Pakistan and the International Monetary Fund are set to begin a major review of the country’s economic performance and progress under its ongoing programmes.
The discussions are expected to assess Pakistan’s performance through June 2026, along with structural benchmarks and key reform commitments.
The review is important because successful completion would allow the relevant IMF approval process to move forward for another financing disbursement.
According to the IMF’s latest published programme documents, the fourth EFF review is scheduled around end-June 2026 performance targets.
Economic performance to come under review
The IMF mission is scheduled to arrive in Pakistan on Sept 23 for the review, which is expected to continue for around two weeks.
Pakistan will present details of its economic performance and progress on programme targets through June 2026.
The discussions are expected to cover fiscal performance, revenue collection, structural reforms and other commitments under the IMF-supported programme.
The 37-month Extended Fund Facility (EFF) was approved for Pakistan in September 2024 and remains a key part of the country’s economic reform programme.
The IMF’s most recent completed review in May 2026 allowed Pakistan to draw about $1.1bn under the EFF and about $220m under the Resilience and Sustainability Facility (RSF).
Energy reforms and circular debt
Energy-sector reforms are expected to be among the major issues discussed during the talks.
The two sides are expected to examine progress in reducing circular debt in the electricity and gas sectors.
Issues such as tariff adjustments, sectoral losses and recovery rates are also likely to receive attention.
The petroleum levy and other petroleum-related and climate support levies could also feature in discussions about improving the financial position of the energy sector.
Gas tariffs are expected to remain another important issue, particularly the requirement for timely adjustments linked to cost recovery.
The IMF has repeatedly emphasised the need to improve the financial viability of Pakistan’s energy sector as part of the broader reform programme.
Tax collection and reforms in focus
Tax collection will also be an important part of the Pakistan-IMF talks.
The discussions are expected to examine revenue targets and measures aimed at reducing tax evasion.
Pakistan is also expected to brief the IMF on efforts to digitise tax administration and improve the efficiency of revenue collection.
The IMF programme has placed continued emphasis on broadening the tax base and strengthening public finances.
Other structural reforms could include the privatisation, rightsizing and restructuring of state-owned enterprises.
These measures are intended to reduce financial pressures on the government and improve the efficiency of public-sector institutions.
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Up to $1.2bn financing under discussion
Successful completion of the review could clear the way for additional financing of around $1.2bn across the IMF-supported arrangements, subject to the required approval process.
The latest completed review in May 2026 resulted in approximately $1.1bn in EFF financing and another $220m through the RSF.
The exact amount available following the September review will depend on the applicable programme conditions and decisions taken through the IMF’s review and approval process.
The EFF programme’s published schedule shows a review linked to end-June 2026 performance, with an EFF purchase of 760 million SDRs scheduled for the fourth review.
This makes the upcoming discussions an important stage in Pakistan’s ongoing engagement with the IMF.
More reforms on the agenda
The IMF team is also expected to discuss several other structural issues affecting Pakistan’s economy.
These could include reforms involving state-owned enterprises, competition, productivity and public-sector efficiency.
Measures concerning the power sector and accumulated circular debt are also expected to remain part of the discussions.
Pakistan’s progress in digitalising tax administration and strengthening economic management is likely to be reviewed as well.
The government will also need to demonstrate progress against the targets and commitments associated with the IMF programme.
The IMF’s latest review stressed continued reforms aimed at strengthening public finances, improving competition and productivity, reforming state-owned enterprises and restoring energy-sector viability.
