A staff-level agreement between Pakistan and the International Monetary Fund (IMF) could not be finalized after nearly two weeks of virtual talks, with both sides highlighting fiscal reforms, energy efficiency, and social spending priorities.
Negotiations are expected to continue in the coming days.
The IMF delegation reviewed Pakistan’s progress under the Extended Fund Facility (EFF) loan program from February 25 to March 11.
Officials said overall program implementation was largely in line with commitments, while discussions centered on:
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Reducing the fiscal deficit and strengthening public finances.
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Maintaining a tight monetary policy to control rising inflation.
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Improving efficiency in the energy sector.
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Increasing spending on social security, health, and education.
The authorities also briefed the IMF on climate change reform measures and the economic impact of the ongoing Middle East conflict.
IMF expresses global economic concerns
The IMF highlighted concerns over rising energy prices and broader financial pressures at the global level, emphasizing the importance of sustainable reforms to maintain economic stability.
No agreement was reached during these talks, and the IMF indicated that further rounds of negotiations will be necessary to resolve outstanding issues, particularly around fiscal targets and sectoral reforms.
