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IMF Delegation Arrives in Pakistan for Fourth Tranche Loan Review
An IMF delegation has arrived in Karachi to review Pakistan’s economic performance under the $7B loan program, including foreign exchange reserves, inflation, and banking policies. Pakistan aims to secure the fourth tranche and $200M under the RSF climate fund.
ND
by News Desk
2026-02-25
IMF Delegation Arrives in Pakistan for Fourth Tranche Loan Review

A delegation from the International Monetary Fund (IMF) has arrived in Pakistan to conduct review talks on the disbursement of the fourth tranche of the $7 billion Extended Fund Facility (EFF) loan program.

The IMF team visited the State Bank of Pakistan in Karachi, where they are meeting officials and receiving technical briefings on the country’s economic performance. According to sources, the initial phase involves sharing technical data, covering July 2025 to January 2026.

During the discussions, State Bank experts will brief the IMF on foreign exchange reserves, monetary policy, inflation, banking regulations, and measures against money laundering and terror financing. The IMF has set a target of raising the central bank’s foreign exchange reserves to $17.8 billion by June 30, while projecting net reserves of $23.3 billion in the next fiscal year.

Sources highlighted that Pakistan achieved a primary surplus of Rs 4,105 billion between July and December 2025, while the current account deficit is estimated at negative 0.6 percent of GDP for the ongoing fiscal year.

The IMF delegation’s visit, scheduled from February 25 to March 11, will include the third economic review under the EFF loan program. Additionally, Pakistan and the IMF will conduct the second economic review under the Resilient Sustainable Fund (RSF) program for climate change. If successful, Pakistan could receive $200 million under the RSF initiative.

Officials indicated that Pakistan has met most of the IMF’s performance targets and is expected to reach a staff-level agreement before the next fiscal year’s budget, potentially securing $1.2 billion in disbursements.

The review talks are seen as a critical step in maintaining Pakistan’s financial stability and continuing the government’s reform programs under IMF supervision.
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IMF

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StateBankOfPakistan

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