IMF Eyes Next Pakistan Funding Review in H2 2025 Amid Budget Talks

The International Monetary Fund (IMF) has confirmed that its next funding review for Pakistan is scheduled for the second half of 2025. In a statement released Friday, the IMF said it is actively engaging with Pakistani authorities to finalize the fiscal framework for the country’s 2026 financial year.

The global lender emphasized that its top priority remains anchoring inflation within the State Bank of Pakistan’s medium-term target range of 5–7%. This objective is central to the country’s ongoing economic stabilization efforts.

According to the IMF, Pakistani officials reaffirmed their commitment to fiscal consolidation. As part of this strategy, the government is targeting a primary surplus of 1.6% of GDP in FY2026. Achieving this surplus is key to restoring macroeconomic stability and ensuring long-term debt sustainability.

The IMF’s statement signals continued cooperation between Islamabad and the Fund, following a period of economic turbulence marked by high inflation, currency depreciation, and dwindling foreign reserves. Pakistan recently concluded a short-term $3 billion standby agreement with the IMF and is seeking a longer-term arrangement to support structural reforms.

With the next funding review set for late 2025, successful negotiations over the upcoming federal budget will be critical in securing future disbursements. The budget must align with IMF goals to unlock further support, particularly as Pakistan faces increasing external financing needs and economic pressures.

The IMF's focus on inflation control, fiscal discipline, and structural reforms aligns with broader efforts to stabilize Pakistan’s economy and build investor confidence. Ongoing discussions in the lead-up to the 2026 budget will play a vital role in shaping the country's financial outlook and maintaining access to international financial support.