IMF's Upcoming Review for Pakistan: What You Need to Know

IMF's Future Plans for Pakistan's Financial Aid

New Delhi: The International Monetary Fund (IMF) is slated to carry out its next funding assessment for Pakistan in the latter half of 2025.

An official statement from the IMF indicates that discussions with Pakistani officials will continue to finalize the budget terms for the fiscal year 2026.

According to the IMF, "The upcoming mission related to the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews is anticipated in the second half of 2025."

A recent IMF mission, led by Nathan Porter, has wrapped up its visit, which focused on the latest economic trends, program execution, and budget strategies for the fiscal year 2026.

Porter noted, "We engaged in productive discussions with the authorities regarding their FY2026 budget proposals and the broader economic policy and reform agenda supported by the 2024 EFF and the 2025 RSF."

The Pakistani authorities reiterated their commitment to fiscal consolidation while ensuring that social and priority expenditures are protected, targeting a primary surplus of 1.6% of GDP for FY2026.

The discussions also addressed ongoing reforms in the energy sector aimed at enhancing financial viability and lowering the high-cost structure of Pakistan's power sector, along with other structural reforms intended to promote sustainable growth and create a more equitable environment for business and investment, as stated by the IMF.

India has expressed gratitude for the 11 additional conditions set by the IMF on Pakistan, clarifying that it does not oppose financial aid intended for genuine developmental purposes.

However, New Delhi has raised significant concerns regarding the timing of the recent bailout package, suggesting that the funds may have indirectly bolstered Pakistan's increasing defense expenditures.

This bailout was initiated while Pakistan was responding to India's Operation Sindoor, a military action targeting terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK).

India has urged the IMF to reconsider the bailout, citing Pakistan's allowance of terrorists using its territory to launch state-sponsored attacks against Indian citizens.

The IMF has stipulated 11 new conditions for Pakistan to meet before the next tranche of its bailout package can be released, as the country continues to harbor terrorists.