Islamabad, September 29, 2026: Finance Minister Muhammad Aurangzeb on Tuesday held a kick-off meeting with a visiting staff mission of the International Monetary Fund (IMF) as formal discussions began for the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF) and the third review of the $1.4 billion Resilience and Sustainability Facility (RSF).
The IMF mission, led by Iva Petrova, is in Islamabad for discussions on Pakistan’s economic performance and progress on agreed structural reforms.
During the virtual meeting, Aurangzeb briefed the IMF team on the latest macroeconomic indicators, improvements in Pakistan’s credit rating and the overall investment climate. He also discussed challenges facing the economy amid the prolonged conflict in Iran.
Successful completion of the reviews could pave the way for the release of around $1.2 billion under the two programmes — $1 billion under the EFF and $200 million under the RSF — by the end of October or early November, although Pakistan may require waivers from the IMF Executive Board over delays in meeting some structural benchmarks.
One of the key issues under discussion is the Sovereign Wealth Fund (SWF) law. Pakistan remains behind schedule on a structural benchmark originally due at the end of March 2026 concerning amendments to the Sovereign Wealth Fund Act.
The proposed amendments seek to strengthen governance mechanisms and safeguards for seven state-owned enterprises (SOEs) with an asset portfolio of around $8 billion. The entities include Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Mari Petroleum, National Bank of Pakistan (NBP), Government Holdings, Pakistan Development Fund and the Neelum-Jhelum Hydropower project.
The amendments are still awaiting parliamentary approval.
The IMF mission arrived in Pakistan on September 23 and initially held meetings in Karachi with the State Bank of Pakistan (SBP) and other stakeholders. It has since engaged officials from the SBP, Ministry of Finance, Federal Board of Revenue (FBR), Establishment Division and finance departments of Khyber Pakhtunkhwa and Punjab.
New procurement rules
The government has also notified the Public Procurement Rules 2026, aimed at improving transparency and competition in public procurement.
The rules make the use of the E-Pak Acquisition and Disposal System (EPADS) mandatory for procurement and disposal by federal procuring agencies. They also provide for dedicated procurement cells and introduce measures to prevent conflicts of interest through third-party validation, evaluation and pre-shipment inspection for major procurements.
The framework strengthens enforcement through provisions for blacklisting and cross-debarment, while establishing independent grievance redressal committees and an appellate mechanism at the Public Procurement Regulatory Authority (PPRA).
The rules identify material deviations and mis-procurement, including deliberate procurement outside EPADS, failure to establish prescribed committees, tailor-made specifications, violations of advertisement and response-time requirements, and failure to follow prescribed evaluation criteria.
They also permit alternative procurement methods, including gallop tendering, shopping and negotiated tendering, subject to specified conditions.
The new framework seeks to reduce response times, shorten standstill periods and streamline tender processing to facilitate faster contract awards. It also promotes sustainable procurement and encourages greater participation by small and medium-sized enterprises and marginalised groups.
EFF and RSF programmes
Pakistan and the IMF reached a 39-month, $7 billion EFF agreement in July 2024, aimed at consolidating macroeconomic stability and creating conditions for stronger and more inclusive growth.
In March 2025, the two sides reached a staff-level agreement on the first review of the EFF and unlocking the RSF arrangement. The IMF Executive Board subsequently approved a $1 billion EFF disbursement in May 2025, bringing total EFF disbursements to around $2.1 billion, and approved the RSF arrangement.
In October 2025, Pakistan and the IMF reached a staff-level agreement on the second EFF review, paving the way for another $1 billion under the programme and $200 million under the RSF following the Executive Board’s approval in December.
A Petrova-led IMF mission held talks with Pakistan in March 2026 for the third EFF review and second RSF review. The two sides did not reach an agreement at the time and decided to continue negotiations.
In May, the IMF Executive Board approved around $1.1 billion for Pakistan under the EFF and approximately $220 million under the RSF, bringing total disbursements under the two arrangements to roughly $4.8 billion.
An IMF mission, also led by Petrova, last visited Pakistan from May 13 to May 20, with discussions focusing on recent economic developments, reform implementation and the government’s budget strategy for fiscal year 2027.
