IMF, Pakistan reach staff-level agreement on EFF, RSF reviews

Pakistan and IMF staff have agreed at staff level on the fourth review of the EFF and the third review of the RSF, according to Business Recorder. The deal also concludes the 2026 Article IV consultation but needs IMF Executive Board approval. Once approved, Pakistan can access about $1.0 billion under the EFF and roughly $210 million under the RSF, taking total disbursements under both arrangements to about $5.7 billion.

Petrova's IMF mission held talks in Karachi and Islamabad between September 23 and October 7, 2026, before issuing a statement on Thursday. In it, growth reached 4% during the opening three quarters of FY26 and is estimated at 3.6% for the full year, despite pressure from higher energy prices. Headline inflation eased to about 10.3% in September after peaking in May, while gross reserves climbed to roughly $21½ billion by end-September.

The authorities have pledged to keep fiscal policy on course under the FY27 budget, with the primary surplus set at 2% of GDP and revenue reforms designed to protect targets. Health and education spending, which the statement says has risen since FY24, is to reach 2.8% of GDP in FY27. The IMF also urged prompt phase-out of the fuel support scheme and a tight SBP stance until inflation durably returns to its target range, while timely tariff adjustments remain essential to curb circular debt.