IMF Mission to Visit Pakistan on September 25 for $7bn Program Review

The International Monetary Fund (IMF) will dispatch its review mission to Pakistan on September 25 to evaluate progress under the $7 billion Extended Fund Facility (EFF). This will mark the second review of the program, with a $1 billion tranche dependent on its successful completion.

So far, Pakistan has secured over $2.1 billion in two disbursements under the EFF. The next release hinges on IMF Board approval following the upcoming assessment.

In the wake of devastating floods, Pakistan’s macroeconomic framework is expected to undergo downward revisions. The real GDP growth target of 4.2% is likely to be reduced due to significant losses in the agricultural sector, while supply chain disruptions are expected to drive consumer prices higher.

Inflation is projected to exceed the earlier FY25 target of 5–7%, primarily due to rising food costs. At the same time, exports particularly rice may shrink, while imports are set to climb as flood-hit agriculture boosts demand for external supplies. This trend will further strain an already widening trade deficit.

The IMF mission will also review Pakistan’s progress on revenue measures, with particular focus on the implementation of the Agriculture Income Tax (AIT) and its potential to strengthen fiscal capacity.