Pakistan and the International Monetary Fund (IMF) are set to begin Pakistan IMF talks on September 23, with the review potentially paving the way for up to $1.2 billion in additional financing.
The discussions are expected to continue for around two weeks and will assess Pakistan’s economic performance through June 2026. Officials will also review progress on structural benchmarks and commitments under the ongoing IMF programme.
The Pakistan IMF talks will cover several key areas, including tax reforms and measures to improve revenue collection. Discussions are also expected to focus on efforts to reduce tax evasion and expand digital systems within the tax administration.
Energy-sector reforms will form another major part of the review. Pakistan and the IMF are expected to examine electricity and gas circular debt, tariff adjustments, sector losses and recovery rates, along with measures to strengthen the financial position of the energy sector.
Gas pricing is also likely to receive particular attention, with tariff adjustments expected from January subject to full cost recovery requirements. The sides may also discuss petroleum-related levies and measures linked to energy-sector finances.
If the review is completed successfully, Pakistan could receive up to $1.2 billion in additional financing. Around $1 billion is linked to the fifth tranche of the Extended Fund Facility, while climate-related financing could provide additional support.
The Pakistan IMF talks will also cover privatisation, rightsizing and restructuring of state-owned enterprises. Other issues on the agenda include the auto policy, wheat and sugar price deregulation, power-sector reforms and accumulated circular debt.
