An International Monetary Fund (IMF) team led by Iva Petrova has reached a staff-level agreement with Pakistani authorities following discussions held from September 24 to October 8, 2025. The talks, which took place in Karachi, Islamabad, and Washington DC, focused on the second review of Pakistan’s 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the first review of its 28-month arrangement under the Resilience and Sustainability Facility (RSF).
According to a statement from Ms. Petrova, “The IMF team has reached a staff-level agreement with the Pakistani authorities on the second review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the first review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF). The staff-level agreement is subject to approval by the IMF Executive Board. Upon approval, Pakistan will have access to about US$1.0 billion (SDR 760 million) under the EFF and about US$200 million (SDR 154 million) under the RSF, bringing total disbursements under the two arrangements to about US$3.3 billion.”
Petrova stated that Pakistan’s economic program supported by these facilities is stabilizing macroeconomic conditions and helping restore market confidence. She noted that recovery remains ongoing, highlighting that for fiscal year 2025, Pakistan recorded its first current account surplus in fourteen years. The country also exceeded its fiscal primary balance target, kept inflation contained, improved external buffers, and saw financial conditions improve as sovereign spreads narrowed.
However, recent floods have significantly impacted nearly seven million people in Pakistan. These events caused over one thousand deaths and damaged housing, public infrastructure, and agricultural land. As a result of this disaster—especially affecting agriculture—the projected GDP growth for fiscal year 2026 has been revised down to approximately three-and-a-quarter to three-and-a-half percent. The floods have emphasized Pakistan’s vulnerability to natural disasters and climate-related risks.
“The authorities reaffirmed their commitment to the EFF- and RSF-supported programs, and to maintaining sound and prudent macroeconomic policies while advancing ongoing structural reforms,” Petrova said.
She added: “The IMF team wants to express its sympathy to those affected by the recent floods, and is grateful to the Pakistani authorities, private sector, and development partners for many fruitful discussions and their hospitality throughout this mission.”