Mobilink Bank, SEDF Partner for MSME Financing
March 4, 2026
IMF expresses satisfaction with Pakistan’s macroeconomic progress under EFF and RSF but flags revenue shortfalls and reform delays as medium-term risks.
The International Monetary Fund (IMF) has expressed satisfaction with Pakistan’s macroeconomic progress during its latest review mission, while cautioning about medium-term risks and delays in key reform targets.
An IMF mission led by Iva Petrova held discussions in Islamabad and Karachi under the third review of Pakistan’s Extended Fund Facility (EFF) and the second review of the Resilience and Sustainability Facility (RSF). Talks will now continue virtually.
During a plenary session with Finance Minister Muhammad Aurangzeb, the government highlighted improvements in fiscal discipline, foreign exchange reserve buffers, and ongoing structural reforms. However, the IMF flagged concerns over the Federal Board of Revenue (FBR) revenue shortfall, delays in external financing plans, and legislative amendments related to state-owned enterprises and sovereign wealth funds.
Officials also briefed the mission on rightsizing reforms across federal ministries, with plans to abolish approximately 54,000 positions by the end of 2025 to generate estimated annual savings of Rs56 billion.
Aurangzeb reaffirmed the government’s commitment to tax administration reform, privatisation initiatives, and an export-led growth strategy, while acknowledging global geopolitical and energy market risks.
Both sides agreed to continue discussions online in the coming days.
