IMF Reports Encouraging Progress in Talks with Pakistan, Final Decision Expected Soon

The International Monetary Fund (IMF) has said that discussions with Pakistan have shown encouraging progress and are expected to be finalized in the coming days.
According to an official statement released after negotiations held from **February 25 to March 11**, the IMF praised Pakistan’s performance in implementing economic reforms and making progress in addressing climate-related challenges.
However, a **staff-level agreement** under the **$7 billion Extended Fund Facility (EFF)** program has not yet been finalized between the IMF and Pakistani authorities.
The IMF noted that Pakistan has made solid progress on its reform agenda, while implementation of the program has largely remained in line with agreed commitments. Discussions also focused on reducing the fiscal deficit and strengthening public finances.
Talks further covered reforms in the energy sector aimed at improving efficiency and financial sustainability. The IMF and Pakistan’s economic team also discussed increasing spending on social protection, healthcare, and education.
The Fund emphasized the need to maintain a **tight monetary policy** to keep inflation under control.
In addition, the economic impact of the ongoing tensions and conflict in the Middle East was also reviewed during the negotiations, including potential effects on Pakistan’s economy.
The IMF said it expects to conclude the talks and reach a final understanding with Pakistan within the next few days.





