IMF Likely to Review Pakistan's Funding in Second Half of 2025 Amid 11 New Conditions

New Delhi – The International Monetary Fund (IMF) is expected to conduct its next funding review for Pakistan in the latter half of 2025, under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programmes.

According to an official IMF statement, ongoing discussions with Pakistani authorities are focused on reaching an agreement regarding the fiscal terms for the 2026 budget.

“The next mission associated with the EFF and RSF reviews is anticipated in the second half of 2025,” the IMF noted.

An IMF mission, led by Nathan Porter, recently concluded its staff visit to Pakistan. The mission focused on recent economic developments, the implementation of reform programmes, and budget planning for fiscal year 2026 (FY2026).

“We held constructive discussions with the authorities on their FY2026 budget proposals and the broader economic policy and reform agenda, which are supported by the 2024 EFF and the 2025 RSF,” said Porter.

Pakistani authorities reaffirmed their commitment to fiscal consolidation while protecting social and priority spending. They are targeting a primary budget surplus of 1.6% of GDP in FY2026.

The discussions also included ongoing energy sector reforms aimed at improving financial sustainability and reducing Pakistan’s high-cost power infrastructure. Other structural reforms were addressed, aimed at promoting sustainable economic growth and creating a more equitable environment for business and investment.

Meanwhile, India has expressed strong concerns regarding the IMF’s continued financial support to Pakistan. While New Delhi clarified that it is not opposed to international aid intended for genuine development, it has welcomed the 11 new conditions imposed by the IMF on Pakistan.

India questioned the timing of the recent bailout, suggesting that the financial assistance may have indirectly supported Pakistan’s growing defence expenditure. The aid coincided with Pakistan's response to India’s Operation Sindoor—a military strike targeting terror infrastructure within Pakistan and Pakistan-occupied Kashmir (PoK).

India has urged the IMF to reconsider the disbursement of funds, citing Pakistan’s ongoing support for terrorist activities and the use of its territory for launching state-sponsored attacks against Indian citizens.

The IMF's 11 new conditions are seen as efforts to ensure greater accountability and transparency before releasing the next tranche of its bailout package to Pakistan.

With inputs from IANS