EFF & RSF: Major headway made towards IMF deal
- Discussions also held on the authorities’ reform agenda to strengthen climate resilience
ISLAMABAD: The International Monetary Fund and Pakistani authorities have made significant headway towards a staff-level agreement on the second review of the 37-month Extended Fund Facility (EFF) and the first review of the 28-month Resilience and Sustainability Facility (RSF), though talks will continue in the coming days to resolve remaining policy differences.
As previously reported by Business Recorder that talks between the IMF mission and the Pakistani authorities remained inconclusive.
In a statement issued on Thursday at the conclusion of its visit, the IMF confirmed that a team led by Iva Petrova held discussions in Karachi and Islamabad from September 24 to October 8, 2025. The discussions covered both the EFF and RSF programmes.
At the conclusion of the discussions, Iva Petrova stated that the IMF mission and Pakistani authorities had made significant progress toward reaching a Staff-Level Agreement (SLA) on the second review of the 37-month EFF and the first review of the 28-month Arrangement under the RSF.
She said that the programme implementation remains strong and is broadly aligned with the authorities’ commitments.
“We have made significant progress in several areas, including sustaining fiscal consolidation to strengthen public finances while providing necessary support for flood recovery; ensuring inflation remains durably within the State Bank of Pakistan’s target range by maintaining a tight, data-dependent monetary policy; restoring the viability of the energy sector through regular tariff adjustments and cost-reducing reforms; and advancing structural reforms to reduce the footprint of the state, strengthen governance and transparency, foster a more competitive business environment, and liberalize commodity markets.”
“We also held productive discussions on the authorities’ reform agenda to strengthen climate resilience, including completing reform measures under the RSF,” she added.
She continued that “the IMF team and the authorities will continue policy discussions with a view to settling any outstanding issues. We want to express our sympathy to those affected by the recent floods and extend our gratitude to the Pakistani authorities, private sector, and development partners for many fruitful discussions and their hospitality throughout this mission.”
Copyright Business Recorder, 2025
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