Islamabad, November 13, 2025: The International Monetary Fund (IMF) has scheduled its Executive Board meeting for December 8 to approve the disbursement of $1.2 billion to Pakistan under two concurrent programmes, with the funds expected to be received by December 9.
The tranche includes $1 billion under the $7 billion Extended Fund Facility (EFF) and $200 million under the $1.4 billion Resilience and Sustainability Fund (RSF). The release follows the Staff-Level Agreement (SLA) reached on October 14, covering the EFF’s second review and the RSF’s first review. Once approved, total disbursements under the two programmes will rise to around $3.3 billion.
An IMF team led by Iva Petrova held detailed discussions in Karachi and Islamabad from September 24 to October 8, followed by meetings in Washington, DC, to finalise the agreement.
The IMF has praised Pakistan’s strong programme implementation, highlighting continued fiscal discipline, targeted support for flood-affected households, efforts to keep inflation within the State Bank of Pakistan’s (SBP) target range, and steps to restore energy-sector viability and advance structural reforms.
The Fund also noted progress on Pakistan’s RSF-supported climate agenda, stressing that the country’s vulnerability to floods underscores the need for sustained and comprehensive reforms to mitigate climate risks.
Ahead of the Board’s approval, the IMF has urged Pakistan to publish its long-delayed Governance and Corruption Diagnostic (GCD) report, which was originally due by the end of July 2025 but has faced repeated delays.
The report’s recommendations call for:
- Full transparency in the functioning of the Special Investment Facilitation Council (SIFC);
- Establishing a central registry of state-owned land and holding entities;
- Conducting judicial performance assessments;
- Public disclosure of bureaucrats’ asset declarations; and
- Removing the Finance Secretary from the State Bank of Pakistan’s board to enhance institutional independence.
While the Finance Ministry cannot legally block publication, it has so far refrained from releasing the report. The IMF has made publication a precondition for the $1.2 billion disbursement.
Once approved, the funds are expected to boost Pakistan’s external reserves while supporting key priorities — including fiscal consolidation, inflation management, energy-sector reforms, and climate resilience.
Meanwhile, a technical mission from the IMF is currently in Islamabad to assist the government in improving the budget-making process and operationalising the newly established Tax Policy Office (TPO) under the Ministry of Finance.
According to official sources, the visiting team is examining the formulation and transparency of Pakistan’s budget process — covering revenues, expenditures, and medium-term fiscal forecasting. The mission’s recommendations could lead to the creation of a new structural benchmark, subject to approval by the IMF review mission expected in February or March 2026.
The TPO, set up under the Finance Ministry, will finalise its internal framework and coordinate with the IMF mission to prepare tax proposals for the 2026–27 federal budget.
Officials said the IMF team will remain in Islamabad for a week, holding meetings on fiscal governance, revenue forecasting, and public finance transparency. It will also review progress on forming a high-powered committee to oversee the implementation of a digitalised Public Finance Management (PFM) master plan — aimed at improving accountability in budget formulation and execution.
The proposed reforms are expected to strengthen financial discipline, improve medium-term planning, enhance service delivery, and curb corruption through a more transparent fiscal framework.
