IMF Reaches Staff-Level Agreement With Pakistan on Fourth EFF Review

The International Monetary Fund has reached a staff-level agreement with Pakistani authorities on the fourth review of the country’s 37-month Extended Fund Facility (EFF) and the third review of its 28-month Resilience and Sustainability Facility (RSF), paving the way for about $1.2 billion in financing subject to Executive Board approval.

Upon Board approval, Pakistan would gain access to roughly $1.0 billion (SDR 760 million) under the EFF and about $210 million (SDR 154 million) under the RSF. This would bring total disbursements under the two arrangements to approximately $5.7 billion.

An IMF team led by mission chief Iva Petrova held discussions in Karachi and Islamabad from September 23 to October 7, 2026. The talks also covered the 2026 Article IV consultation.

“The IMF team has reached a staff-level agreement with the Pakistani authorities on the fourth review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the third review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF),” the Fund said in a statement. The agreement remains subject to formal approval by the IMF Executive Board.

Programme implementation under the EFF has remained broadly on track despite a challenging external environment. The authorities have successfully navigated the impact of the Middle East conflict, with strong policies helping preserve macroeconomic stability, according to the IMF.

Real GDP growth reached 4 percent in the first three quarters of FY26. Higher energy prices and supply disruptions somewhat weakened momentum, with full-year growth estimated at 3.6 percent. Headline inflation, after peaking in May, moderated to about 10.3 percent in September, while core inflation remained contained. The current account was broadly balanced in FY26, supported by strong remittances, and gross reserves rose to about $21.5 billion by end-September.

The Fund noted that the authorities remain committed to preserving macroeconomic stability, strengthening public finances, ensuring inflation returns durably to the State Bank of Pakistan’s target range, enhancing energy sector viability, strengthening social protection, and accelerating reforms to foster sustainable, private sector-led, and inclusive growth. Progress continues under the RSF on climate-related reforms aimed at building resilience.

Disbursement is expected within four to five weeks of Board approval, according to reports. Pakistan continues to rely on external financing to bolster foreign exchange reserves and meet debt obligations amid elevated risks from geopolitical tensions, volatile energy prices, and tighter global financial conditions.