- IMF staff and the Pakistani authorities held discussions under the 2026 Article IV consultation and have reached a staff-level agreement on the fourth review under Pakistan’s Extended Fund Facility (EFF) and the third review under the Resilience and Sustainability Facility (RSF).
- Program implementation under the EFF has remained broadly on track despite a challenging external environment. The authorities remain committed to preserving macroeconomic stability, strengthening public finances, ensuring that inflation returns durably to the State Bank of Pakistan’s target range, enhancing energy sector viability, strengthening social protection, and accelerating reforms to foster sustainable, private sector-led, and inclusive growth.
- The authorities have also continued to advance their climate reform agenda under the RSF to strengthen Pakistan’s resilience and reduce vulnerabilities to climate-related risks.
Washington, DC: An International Monetary Fund (IMF) team, led by Ms. Iva Petrova, held discussions under the 2026 Article IV consultation and on the fourth review under the Extended Fund Facility (EFF) and the third review under the Resilience and Sustainability Facility (RSF) in Karachi and Islamabad from September 23 to October 7, 2026. At the conclusion of the discussions, Ms. Petrova issued the following statement:
“The IMF team has reached a staff-level agreement with the Pakistani authorities on the fourth review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the third review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF). The staff-level agreement is subject to approval by the IMF Executive Board. Upon approval, Pakistan will have access to about US$1.0 billion (SDR 760 million) under the EFF and about US$210 million (SDR 154 million) under the RSF, bringing total disbursements under the two arrangements to about US$5.7 billion.
“Supported by the EFF, the authorities have successfully navigated the impact of the Middle East conflict, and strong policies have helped preserve macroeconomic stability. Real GDP growth reached 4 percent in the first three quarters of FY26, and although higher energy prices and supply disruptions weakened somewhat the momentum, FY26 growth is estimated at 3.6 percent. Headline inflation, after peaking in May, moderated to about 10.3 percent in September, while core inflation remained contained. The current account was broadly balanced in FY26 supported by strong remittances, and gross reserves rose to about US$21½ billion by end-September. Sovereign rating upgrades and renewed international market access also point to stronger policy credibility. Nevertheless, risks remain high, particularly from geopolitical tensions, volatile energy prices, tighter global financial conditions, and trade disruptions.
