PAKISTAN and the International Monetary Fund have made significant headway in negotiations over the country's multi-billion dollar bailout programme, but have stopped short of a final deal, with talks expected to continue over the coming days.
The IMF said on Wednesday (11) that its mission, led by Iva Petrova, had held two weeks of discussions with Pakistani authorities covering the third review of a $7 billion Extended Fund Facility and the second review of a $1.4 billion Resilience and Sustainability Facility.
"While considerable progress was made in the discussions, these will continue in the coming days," Petrova said, adding that both sides needed more time "to more fully assess the impact of recent global developments on Pakistan's economy."
A key concern is the spillover from the Middle East conflict. Pakistan imports most of its fuel, leaving it exposed to volatile energy prices. Talks covered the impact of rising oil costs on the country's balance of payments and its external financing needs.
The IMF said Pakistan's programme implementation had remained "broadly aligned" with the government's commitments through the end of February. Authorities were praised for progress on fiscal consolidation, maintaining a tight monetary policy and pushing forward energy sector reforms.
Pakistan also received credit for climate-related work, with the Fund noting "good progress" in implementing reforms under the Resilience and Sustainability Facility, which was secured in May 2025.
The two programmes, the EFF agreed in September 2024 and the RSF, are considered vital to stabilising Pakistan's fragile economy. Approval of the next disbursement depends on the IMF being satisfied with the country's fiscal performance and reform progress.
"The IMF team and the authorities will continue these discussions with a view to concluding them in the coming days," Petrova said.
(with inputs from Reuters)
