IMF shares draft deal as Pakistan nears $1.2 billion disbursement

Pakistan has made significant progress toward securing a $1.2 billion tranche from the International Monetary Fund following virtual discussions between the two sides, sources from the Ministry of Finance told Nukta.

The IMF has shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistani authorities, marking a key step toward a staff-level agreement, according to the officials.

Under the process, Pakistan and the IMF will review economic targets and performance benchmarks outlined in the MEFP draft. A staff-level agreement is expected once both sides reconcile data across nine key tables included in the document, the sources said.

Consultations are ongoing between IMF officials and Pakistan’s finance ministry as well as the State Bank of Pakistan over the draft framework.

The review covers a broad range of sectors and institutions, including the ministries of energy and petroleum, the Federal Board of Revenue, and the National Accountability Bureau. Targets related to state-owned enterprises and regulators such as Oil and Gas Regulatory Authority, National Electric Power Regulatory Authority, and Securities and Exchange Commission of Pakistan are also under discussion.

Officials said the MEFP review further includes input from the Auditor General of Pakistan, provincial administrations and proposed targets for agricultural income tax.

The finance ministry has circulated the MEFP draft among all relevant ministries and divisions for feedback, the sources added.

Separately, Pakistan and the IMF are expected to begin budget consultations for the next fiscal year in the last week of April. An IMF technical mission will assist authorities in preparing the 2026-27 budget, which is expected to align with the Fund’s projections and policy targets.

The budget process will involve consultations with key institutions, including the finance and energy ministries, the petroleum division, the Federal Board of Revenue and the State Bank of Pakistan.

An IMF delegation is expected to arrive in Pakistan toward the end of next month for budget talks and remain in the country until mid-May, the sources said.