Muhammad Amanullah | August 11, 2026
Pakistan has begun preparations to secure the fifth tranche under its Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF), with talks between Pakistan and the IMF expected to take place next month.
According to sources in Pakistan’s Ministry of Finance, an IMF delegation is expected to visit Pakistan for the next programme review. The government has instructed all relevant ministries and departments to compile updated data, reports and details of progress so that Pakistan can provide a comprehensive briefing on the programme’s conditions and targets.
Ministries Directed to Prepare for IMF Talks
According to sources, relevant ministries have been asked to prepare reports detailing the measures, reforms and targets achieved under the IMF programme in their respective sectors.
Officials are also compiling information on progress made on structural benchmarks and economic reforms. These details are expected to be presented to the IMF delegation during the upcoming review.
Energy Sector to Remain a Key Issue
Reforms in the energy sector are expected to be among the major issues discussed during the upcoming negotiations.
Pakistan is expected to brief the IMF on measures being taken in the electricity and gas sectors, including progress on reforms aimed at improving the financial stability of the energy sector.
The circular debt in the energy sector is also expected to be an important topic. The government will provide details of measures aimed at reducing circular debt and improving the financial position of the energy sector.
Review of Economic Targets
The talks will also cover various economic targets and reforms included in the IMF programme.
Relevant ministries and institutions are currently preparing details of progress made so far, implementation of agreed targets and the measures planned for the coming period.
The government is expected to focus on presenting its progress on the programme’s conditions and reform commitments during discussions with the IMF.
Pakistan Could Receive Around $1.2 Billion
According to sources, if the talks are successfully completed, Pakistan could receive approximately $1.2 billion under the current lending programme.
The amount is expected to include around $1 billion as the fifth tranche, while approximately $200 million could be provided to help Pakistan deal with climate-related losses.
The additional climate financing is considered important for supporting Pakistan’s economy in dealing with the effects of climate change and natural disasters.
IMF Delegation Expected Next Month
Sources said an IMF delegation is expected to visit Pakistan next month for the programme review.
During the talks, Pakistani officials are expected to provide detailed briefings on reforms undertaken in different sectors and progress towards meeting programme targets.
The Ministry of Finance has instructed relevant institutions to complete the required information and reports ahead of the negotiations so that officials can provide detailed explanations on the programme’s various requirements.
If the review is successfully completed and the two sides reach an agreement on the programme targets, Pakistan could move closer to receiving the fifth IMF tranche and climate financing.
The funds are expected to provide additional support to Pakistan’s foreign exchange reserves and external payment position.
