Pakistan, IMF edge closer to staff-level deal under EFF

March 15, 2025 (MLN): The International Monetary Fund (IMF) and the Pakistani authorities made significant progress toward reaching a Staff Level Agreement (SLA) on the first review under the 37-month Extended Arrangement under the Extended Fund Facility (EFF), according to the statement of Mr Nathan Porter, IMF Mission Chief released today. 

An IMF team, led by Nathan Porter, visited Islamabad and Karachi from February 24 to March 14, 2025, to hold discussions on the first review of Pakistan’s economic program supported by the EFF and on a possible new arrangement under the IMF’s Resilience and Sustainability Facility (RSF).

Program implementation has been strong, and the discussions have made considerable progress in several areas including the planned fiscal consolidation to reduce public debt durably, maintenance of sufficiently tight monetary policy to maintain low inflation, acceleration of cost-reducing reforms to improve energy sector viability, and implementation of Pakistan’s structural reform agenda to accelerate growth, while strengthening social protection and rebuilding health and education spending. 

Progress has also been made in discussions on the authorities’ climate reform agenda, which aims to reduce vulnerabilities from natural disasters-related risks, and accompanying reforms which could be supported under a possible arrangement under the RSF. 

“The mission and the authorities will continue policy discussions virtually to finalize these discussions over the coming days," he further added.  

The IMF team is grateful to the Pakistani authorities, private sector, and development partners for fruitful discussions and hospitality throughout this mission, the statement reads. 

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