ISLAMABAD: The government on Tuesday reiterated its commitment to continue implementing agreed structural reforms as Pakistan and the International Monetary Fund (IMF) formally kicked off negotiations for the fourth review of the USD 7 billion Extended Fund Facility (EFF) and the third review of USD 1.4 billion Resilience and Sustainability Facility (RSF).
Finance Minister Muhammad Aurangzeb held a virtual kick-off meeting with the visiting IMF staff mission led by Iva Petrova and briefed the Fund team on the latest macroeconomic developments, improvements in Pakistan’s credit ratings and the overall investment climate.
Official said that the discussions are taking place against a challenging external backdrop, particularly the prolonged Iran conflict and its potential implications for regional economic activity, energy prices, external financing and the balance of payments.
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Successful completion of the two reviews would pave the way for disbursement of around USD 1.2 billion by end-October or early November, comprising approximately USD 1 billion under the EFF and USD 200 million under the RSF.
The IMF mission also held detailed discussions with the Ministry of Industries and Production on the proposed new auto policy, including tax incentives for electric and hybrid vehicles.
Sources said the government briefed the Fund on proposed taxation measures for the automotive sector.
Copyright Business Recorder, 2026
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