An International Monetary Fund (IMF) mission has begun technical discussions with the State Bank of Pakistan in Karachi as part of the third review of Pakistan’s $7 billion Extended Fund Facility and the second review of the $1.1 billion Resilience and Sustainability Facility.
The IMF delegation, led by Iva Petrova, will hold meetings in Karachi this week before moving to Islamabad for policy-level talks with federal and provincial authorities starting Monday. The visit will formally begin with a session chaired by Finance Minister Muhammad Aurangzeb.
Speaking to reporters after a parliamentary committee meeting, the finance minister said the government was fully prepared for a successful review. He noted that tax collection trends remained stable and expressed confidence in meeting key programme targets.
Addressing concerns regarding the United Arab Emirates’ $2 billion safe deposit with the central bank, which has been on short-term rollover after its expiry more than two months ago, Aurangzeb said there was no issue and that both countries remained in close coordination.
Deputy Prime Minister Ishaq Dar also confirmed that discussions were ongoing and that the deposit would be rolled over.
Pakistan continues to rely on annual rollovers of deposits from China, Saudi Arabia, and the UAE, which together account for approximately $12.5 billion in external financing support under the IMF programme.
The nearly two-week review, scheduled to conclude on March 11, will evaluate Pakistan’s economic performance for the half-year ending December 31, 2025. The talks will also cover forward planning, including early budget proposals and fiscal strategy outlines for the upcoming financial year.
