Fund to carry out the third review of the SEP and the second review of the Resilience and Sustainability Fund
Finance Minister Muhammad Aurangzeb speaks during an interview with Reuters at the 2025 IMF-World Bank Annual Spring Meetings in Washington, DC, US, April 25, 2025. Photo: Reuters/File
Pakistan is well positioned 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 staff mission will carry out the third review under the IMF’s Extended Fund Facility (EFS) and the second review under the Resilience and Sustainability Facility (RSF), according to official statements by the IMF and the Ministry of Finance. The IMF mission, headed by Iva Petrova, arrived in Pakistan today and will remain until March 11 to complete the two reviews.
The successful completion of the reviews is expected to unlock approximately $1.2 billion ($1 billion from the EFF and $200 million from the RSF) by the end of April. “We are preparing for the third review,” Aurangzeb said.
“It will cover both performance benchmarks and structural benchmarks, as well as a prospective evaluation of the program.” He added that he would meet the IMF team in Islamabad for further talks, describing them as a “meaningful conversation,” although he noted it was too early to predict the results.
Earlier, the IMF highlighted that Pakistan’s policy measures have “helped stabilize the economy and rebuild confidence.”
Pakistan reported a primary fiscal surplus of 1.3% of GDP for FY25, in line with program targets, while the State Bank projected inflation to remain within the range of 5-7% for FY26 and FY27. 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 rate adjustments, and the implementation of the Governance and Corruption Diagnostic report and the National Fiscal Pact. Officials said the federal budget framework for fiscal year 2026-27 will also be reviewed.
WB country director calls finance minister Aurangzeb
Separately, World Bank Country Director for Pakistan Bolormaa Amgaabazar met Aurangzeb at the Finance Division to discuss strengthening cooperation under the Bank’s National Partnership Framework (PPF) and promoting key government reforms.
The talks covered population and human capital development, climate resilience, agriculture and energy sector reforms and overall portfolio performance.
World Bank Director for Pakistan, Ms. Bolormaa Amgaabazar, today called on Federal Minister of Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division.
The meeting focused on strengthening cooperation within the framework of the World Bank Country Plan… pic.twitter.com/wSPdTp1E7j
— Ministry of Finance, Government of Pakistan (@Financegovpk) February 25, 2026
Aurangzeb emphasized the importance of effective implementation of the MAP, particularly in priority areas such as demographic management and climate change.
Both sides discussed how to improve coordination between the federal and provincial governments, improve transparency in project design and strengthen monitoring mechanisms to achieve intended development results.
The World Bank reaffirmed its commitment to engage with federal and provincial stakeholders in Pakistan.
