ISLAMABAD: The International Monetary Fund is expected to provide Pakistan with another $3.6 billion over the next 14 months under its ongoing loan programs, according to IMF program documents.
The IMF’s current support for Pakistan includes the Extended Fund Facility and the Resilience and Sustainability Facility. Together, the two programs are worth about $8.4 billion. Pakistan has already received around $4.8 billion, while the remaining amount is expected to be released in future tranches after successful economic reviews.
The next economic review under the EFF and RSF programs is expected in September.
According to IMF documents, completion of the fourth review is scheduled for September 2026. An IMF mission may visit Pakistan for talks before the review is completed.
The release of future funds will depend on Pakistan’s performance under the agreed reform program.
The IMF has emphasized the need for Pakistan to maintain fiscal discipline, reduce the budget deficit and increase tax revenue.
The program also requires reforms in the tax system, the energy sector and state-owned enterprises. IMF documents say Pakistan must strengthen public finances, improve energy-sector viability, reform state-owned enterprises and support sustainable growth.
The IMF has also called for measures to reduce inflation and bring public debt to a sustainable level.
Energy-sector reforms remain one of the most important parts of the IMF program.
Pakistan is expected to reduce circular debt, improve power-sector management and continue reforms aimed at lowering losses in the energy system. Reuters reported earlier this year that the IMF was discussing electricity tariff revisions with Pakistan and was monitoring power-sector circular debt targets under the $7 billion EFF program.
The program also includes reforms linked to privatization and the performance of state-owned enterprises.
Pakistan will also have to implement reforms linked to climate resilience.
The RSF program is designed to help Pakistan deal with long-term risks from climate change, floods, droughts and other environmental shocks. The IMF approved Pakistan’s RSF arrangement in 2025 alongside the first EFF review.
Under the overall arrangement, Pakistan is set to receive $7 billion through the EFF by September 2027 and $1.4 billion through the RSF climate-resilience program.
Pakistan’s 37-month EFF arrangement was approved on September 25, 2024. The program aims to support economic stability, improve public finances and create conditions for sustainable growth.
The remaining IMF financing will be released in phases, subject to Pakistan meeting program targets and completing future reviews.
For now, the next major step is the September review, which will determine whether Pakistan remains on track for the next tranche of IMF funding.
