ISLAMABAD: The International Monetary Fund (IMF) has shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistan, as both sides continue discussions virtually on the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).
This development was confirmed by several government officials on condition of anonymity. Business Recorder sought confirmation from Finance Minister Muhammad Aurangzeb through text message, however no response was received till filing of this report.
Officials said the sharing of the draft marks a key step towards finalising the staff-level agreement (SLA), which is expected to be announced in the coming days, subject to consensus on policy actions and macroeconomic targets.
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The Ministry of Finance has circulated the draft MEFP among relevant ministries, divisions and institutions, including the State Bank of Pakistan (SBP), for feedback. Consultations are currently underway to align on data and commitments outlined in the document.
According to procedure, the agreement will be followed by the issuance of a Letter of Intent (LoI), to be signed by the finance minister and the SBP Governor.
The draft MEFP includes proposed performance targets for key institutions, including the ministries of finance, energy and petroleum, the Federal Board of Revenue, and regulatory authorities.
Officials said a successful staff-level agreement would pave the way for the disbursement of the next tranche amounting to $1.2 billion subject to the IMF Executive Board approval. An IMF team, led by Iva Petrova, held discussions on the third review under the EFF and the second review under the RSF in Karachi and Islamabad, as well as virtually, from February 25 to March 11, 2026.
However, the talks remained inconclusive. It was decided that the IMF team and the Pakistani authorities will continue these discussions with a view to conclude them in the coming days.
Copyright Business Recorder, 2026
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