ISLAMABAD — The International Monetary Fund (IMF) and Pakistani authorities have made significant progress toward a staff-level agreement (SLA) on the second review of the 37-month Extended Fund Facility (EFF) and the first review of the 28-month Resilience and Sustainability Facility (RSF), the IMF said on Thursday.
The IMF mission, led by Iva Petrova, held discussions in Karachi and Islamabad from September 24 to October 8, 2025, covering both the EFF and RSF programmes.
At the conclusion of the discussions, Iva Petrova stated that the IMF mission and Pakistani authorities had made significant progress toward reaching a Staff-Level Agreement (SLA) on the second review of the 37-month EFF and the first review of the 28-month Arrangement under the RSF.
She said that the programme implementation remains strong and is broadly aligned with the authorities’ commitments.
“We have made significant progress in several areas, including sustaining fiscal consolidation to strengthen public finances while providing necessary support for flood recovery; ensuring inflation remains durably within the State Bank of Pakistan’s target range by maintaining a tight, data-dependent monetary policy; restoring the viability of the energy sector through regular tariff adjustments and cost-reducing reforms; and advancing structural reforms to reduce the footprint of the state, strengthen governance and transparency, foster a more competitive business environment, and liberalize commodity markets.”
“We also held productive discussions on the authorities’ reform agenda to strengthen climate resilience, including completing reform measures under the RSF,” she added.
The IMF team also discussed reforms under the RSF to strengthen climate resilience. Petrova added that policy discussions will continue in the coming days to resolve remaining issues.
The IMF expressed sympathy for those affected by recent floods and thanked Pakistani authorities, the private sector, and development partners for their cooperation during the mission.
