ISLAMABAD: Negotiations between Pakistan and the International Monetary Fund are set to begin Wednesday, with an IMF delegation arriving in the country for talks focused on releasing the next tranche of the current loan program, according to Finance Ministry sources.
The discussions will center on obtaining the fifth tranche of Pakistan's ongoing Extended Fund Facility arrangement. Sources said the talks will also include Article IV review negotiations with the IMF mission, during which a detailed review of Pakistan's economy will be conducted.
Pakistan's economic performance through June 2026 is expected to be presented to the IMF during the talks. Structural benchmark targets and broader economic reform objectives will also be on the agenda.
Energy-sector reforms will feature prominently in the negotiations, with targets related to circular debt in the electricity and gas sectors slated for discussion.
If the negotiations succeed, Pakistan is likely to receive up to $1.2 billion, including approximately $200 million earmarked for climate change initiatives under the Resilience and Sustainability Facility.
Pakistan secured the current 37-month IMF program in September 2024. The first tranche of roughly $1 billion under the EFF was received that same month. A second tranche of about $1 billion followed in May 2025, and a third disbursement was received on December 11, 2025.
Pakistan's relationship with the IMF dates back to 1958, when it received its first loan of $25,000 under a standby arrangement. Since then, the country has entered into more than two dozen financial arrangements with the Washington-based lender, making it one of the most frequent users of IMF programs globally.
The current $7 billion EFF, approved on September 25, 2024, is Pakistan's 25th IMF program since independence. The 37-month arrangement aims to support Pakistan's efforts to entrench macroeconomic stability, rebuild foreign exchange reserves, broaden the tax base, and advance structural reforms, including overhauling state-owned enterprises and restoring energy-sector viability.
Pakistan's debt remains assessed as sustainable, but the IMF has warned that the path is narrow and could be undermined by policy slippages or reduced external financing.
