KARACHI / ISLAMABAD (HRNW): An International Monetary Fund (IMF) mission, led by Iva Petrova, arrived in Pakistan on Wednesday, February 25, 2026, to initiate the third review of the $7 billion Extended Fund Facility (EFF) and the second review of the $1.1 billion Resilience and Sustainability Facility (RSF). The delegation began its visit in Karachi with technical-level discussions at the State Bank of Pakistan (SBP), where they were briefed on the country’s macroeconomic performance from July to December 2025.
According to financial sources, the talks are focusing on Pakistan’s progress in meeting key quantitative targets, including a primary fiscal surplus of 1.3% of GDP and the stabilization of inflation, which is projected to remain between 5% and 7%. However, the mission is expected to closely scrutinize revenue shortfalls at the Federal Board of Revenue (FBR) and the implementation of energy sector reforms. The technical data-sharing phase will be followed by policy-level negotiations with federal and provincial authorities in Islamabad starting next week.
A successful conclusion of these reviews is critical for unlocking approximately $1.2 billion in funding—comprising $1 billion from the EFF and $200 million from the RSF—expected by late April 2026. Finance Minister Muhammad Aurangzeb expressed optimism regarding a staff-level agreement, noting that the discussions will also set the broad contours for the upcoming Federal Budget 2026-27 and address systemic challenges such as circular debt and tax evasion.
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