Funds to carry out the third review of the EFF and the second review of the Resilience and Sustainability Facility
Finance Minister Muhammad Aurangzeb speaks during an interview with Reuters at the 2025 Spring Annual Meetings of the IMF and the World Bank in Washington, DC, United States, April 25, 2025. Photo: Reuters/File
Pakistan is well placed for the International Monetary Fund’s (IMF) review of a $1.2 billion tranche, Finance Minister Muhammad Aurangzeb said on Wednesday, as the IMF mission began discussions in Karachi.
The IMF staff mission will conduct the third review under the IMF’s Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), according to official statements from the IMF and the Ministry of Finance. The IMF mission, led by Iva Petrova, arrived in Pakistan today and will remain there until March 11 to complete the two reviews.
Passing the exams is expected to unlock about $1.2 billion – $1 billion from the FEP and $200 million from the RSF – by the end of April. “We are preparing for the third exam,” Aurangzeb said.
“It will cover both performance and structural criteria, as well as a prospective evaluation of the program.” He added that he would meet the IMF team in Islamabad for further discussions, describing them as a “meaningful conversation”, while stressing that it was too early to predict the outcome.
Earlier, the IMF had highlighted that Pakistan’s policy measures had “helped stabilize the economy and restore confidence”.
Pakistan reported a primary fiscal surplus of 1.3 percent of GDP for FY25, in line with program targets, while the State Bank projects inflation to remain in the 5-7 percent range for FY26 and 27. Foreign exchange reserves reached $14.5 billion at the end of FY25, with a target of $18 billion by June.
Key discussion points will include circular debt management, recent electricity tariff adjustments and the implementation of the Governance and Corruption Diagnostic Report and the National Fiscal Compact. Officials said the federal budget framework for fiscal years 2026-2027 would also be revised.
WB country director calls on FinMin Aurangzeb
Separately, World Bank Country Director for Pakistan Bolormaa Amgaabazar met Aurangzeb at the Finance Division to discuss strengthening cooperation under the Bank’s Country Partnership Framework (CPF) and advancing key government reforms.
Discussions focused on population and human capital development, climate resilience, reforms in the agriculture and energy sectors and overall portfolio performance.
World Bank Country Director for Pakistan, Ms. Bolormaa Amgaabazar, today called on Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb at the Finance Division.
The meeting focused on strengthening cooperation within the framework of the World Bank country program… pic.twitter.com/wSPdTp1E7j
– Ministry of Finance, Government of Pakistan (@Financegovpk) February 25, 2026
Aurangzeb stressed the importance of effective implementation of the CPF, especially in priority areas such as population management and climate change.
The two sides discussed improving coordination between the federal and provincial governments, improving transparency in project design and strengthening monitoring mechanisms to achieve expected development results.
The World Bank has reaffirmed its commitment to collaborate with federal and provincial stakeholders in Pakistan.
