Pakistan prepares for IMF review talks to unlock $1.2 billion, as the country gears up for negotiations with the International Monetary Fund in Islamabad, ARY News reported on Sunday, citing sources. The talks are expected to brief the Fund on Pakistan’s economic performance through June 2026 and discuss progress on key reform commitments under the ongoing programme.
According to the details, the review talks will be held in Islamabad, where Pakistani authorities will present their progress on structural benchmarks and economic reform targets. The discussions will also cover energy-sector reforms, including targets related to circular debt in both the electricity and gas sectors, which have remained a persistent challenge for the government.
Successful negotiations could pave the way for the release of the fifth tranche under Pakistan’s ongoing Extended Fund Facility (EFF) programme. Sources indicated that Pakistan could receive around $1.2 billion in total. This amount includes approximately $1 billion under the EFF and another $200 million under climate-related financing aimed at helping the country address the impact of climate change.
The IMF review talks to unlock $1.2 billion come as Pakistan continues to implement reforms agreed under the 37-month EFF programme secured in September 2024. So far, the country has received its first $1 billion tranche in September 2024, followed by another $1 billion in May 2025. The third $1 billion tranche was received on December 11, 2025.
The upcoming review is expected to focus on Pakistan’s progress in implementing economic reforms and meeting the agreed targets under the IMF programme. Authorities are expected to brief the Fund on the economic performance through June 2026, as well as progress on structural benchmarks and key economic reform commitments.
Energy-sector reforms will be a critical component of the discussions, particularly the targets related to circular debt in the electricity and gas sectors. The government has been under pressure to address these issues, which have strained the country’s fiscal position and hindered broader economic stability.
The outcome of the IMF review talks to unlock $1.2 billion will be closely watched, as it could provide a significant boost to Pakistan’s external financing position. The release of the tranche would also signal continued international confidence in the country’s reform agenda, even as challenges remain.
Pakistan secured the current EFF programme in September 2024, and the upcoming review represents a crucial test of its commitment to the agreed reform path. The discussions in Islamabad will determine whether the country can secure the next instalment and maintain momentum on its economic reform programme.
Source: ARY News