IMF concludes Pakistan review talks, presses for energy reforms and fiscal discipline

Profit reported that Pakistan and the IMF ended their talks on Wednesday, covering the fourth assessment under the $7 billion Extended Fund Facility (EFF) and the third check on the $1.4 billion Resilience and Sustainability Facility (RSF). The meetings ran from September 23 until October 7 and included an Article IV consultation. A mission under Iva Petrova examined the economy, tax receipts, external funding needs and progress on structural changes.

Energy liabilities drew the Fund's main focus, which asked for corrective steps after circular debt in the power sector reached roughly Rs1.675 trillion at the end of June 2026, exceeding the programme goal. It pressed for replacing power tariff relief for low-income users with direct cash support through the Benazir Income Support Programme (BISP). Gas-sector circular debt is put at an estimated Rs3.6 trillion, and according to sources, Pakistani authorities agreed to speed up targeted gas subsidies and limit fresh arrears while protecting vulnerable households.

The Fund kept the FBR's yearly collection goal at Rs15.264 trillion, since collections ran ahead of goal in the opening quarter of the fiscal year. Attention now shifts to hitting the half-year revenue goal and keeping collections steady through the rest of the year. The IMF and the finance ministry had not yet issued any official statement on the outcome when filed.