IMF likely to review Pak funding in 2025 second half amid 11 new conditions

The IMF is expected to review Pakistan’s funding situation in the second half of 2025, amid the imposition of 11 new conditions. An official IMF statement indicated ongoing discussions with Pakistani officials to finalize the budget for the 2026 fiscal year. The next mission related to the Extended Fund Facility (EFF) and Resilience and Sustainability.

The IMF is expected to review Pakistan’s funding situation in the second half of 2025, amid the imposition of 11 new conditions. An official IMF statement indicated ongoing discussions with Pakistani officials to finalize the budget for the 2026 fiscal year. The next mission related to the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews is planned for late 2025.

An IMF team led by Nathan Porter recently completed a visit analyzing Pakistan’s economic progress, program implementation, and FY2026 budget strategy. Porter noted that discussions were constructive, with Pakistan reaffirming its commitment to fiscal consolidation while maintaining social and priority spending, targeting a primary surplus of 1.6% of GDP. The talks also covered energy sector reforms to improve financial sustainability and broader structural reforms aimed at fostering growth and investment.

India expressed gratitude for the 11 additional conditions that the IMF has placed on Pakistan, clarifying it is not opposed to aid aimed at genuine development. However, India raised concerns over the timing of Pakistan’s bailout, suggesting the funds might have indirectly supported increased Pakistani defense spending, especially amid tensions following Operation Sindoor, a military strike against terror infrastructure. India has urged Pakistan to reconsider the bailout, accusing Islamabad of allowing terrorism to persist on its soil. The IMF’s conditions are part of efforts to ensure Pakistan’s continued financial support amid ongoing security issues.