Summary Pakistan and the IMF are set to begin reviews of the $7bn EFF and RSF programmes, with successful completion expected to unlock about $1.2bn in financing.
ISLAMABAD (Dunya News) – Formal negotiations between the government and the International Monetary Fund (IMF) staff mission are set to begin today (Monday) for the fourth review of the $7 billion Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF).
The IMF mission, led by Iva Petrova, is expected to stay in Pakistan for nearly two weeks, until the first week of October, to conduct both reviews.
Pakistan is currently under a 37-month IMF programme aimed at stabilising the economy through fiscal discipline, structural reforms and measures to support long-term growth.
Upon successful completion of the reviews, Pakistan will be eligible for about $1 billion under the EFF and another $200 million under the RSF, bringing the total expected financing to $1.2 billion by the end of November or early December.
The discussions will cover Pakistan’s economic performance and programme targets based on data up to June 30. Pakistani authorities will brief the IMF on the Sovereign Wealth Fund and efforts to reduce circular debt, while also explaining the reasons for not deregulating the sugar sector.
The IMF will also be briefed on the current account deficit, primary surplus, foreign exchange reserves and the exchange rate. Talks with the Federal Board of Revenue (FBR) will focus on expanding the tax base and implementing reforms.
IMF to provide additional $3.6bn to Pakistan over next 14 months
The Ministry of Energy will brief the IMF on circular debt and reforms, while the National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) will provide updates on measures to combat money laundering and terrorist financing.
The IMF will also hold talks with the Punjab and Khyber Pakhtunkhwa governments on improving tax and non-tax revenue collection, including measures to enhance agricultural tax collection.
Meanwhile, Adviser to the Finance Minister Khurram Schehzad clarified that the government was not purchasing aircraft for Pakistan International Airlines (PIA), which was privatised through an auction last year.
He said the government had neither announced any sovereign guarantee for a taxpayer-funded loan to purchase aircraft for PIA nor was it buying aircraft for the privatised airline.
The clarification came after claims on social media that a minister was negotiating sovereign-linked financing for PIA jets.
The claims followed a meeting between Finance Minister Muhammad Aurangzeb and US Export-Import Bank Chairman John Jovanovich on the sidelines of the 81st session of the United Nations General Assembly in New York.
The Finance Ministry said the meeting covered the Reko Diq mining project and financing opportunities for procuring aircraft for PIA. Aurangzeb had also discussed PIA’s interest in Boeing 787 Dreamliners and sought support for a financing package covering aircraft and engines.
Schehzad said US Exim financing generally supports US exports and can involve asset-backed aircraft financing, meaning a sovereign guarantee is not automatically required.
He added that discussions with US Exim were not limited to PIA and covered potential financing in aviation, refinery upgrades and Reko Diq as part of broader Pakistan-US economic engagement.
