Pakistan expects to finalise IMF loan review this week

Finance Minister Muhammad Aurangzeb has said that Pakistan is likely to sign a staff-level agreement (SLA) with the International Monetary Fund (IMF) this week, a key step toward securing the next $1.24 billion tranche under its ongoing loan programme.

Speaking to Reuters on the sidelines of the IMF-World Bank annual meetings, Aurangzeb said the discussions with the IMF mission had been “constructive,” covering both quantitative and structural benchmarks.

“The mission was on the ground for a couple of weeks, we had very constructive dialogue with them … During the course of this week, we’re hoping that we can get the SLA done,” the minister said.

An IMF mission concluded its visit to Pakistan last week without finalising the SLA on the second review of the $7 billion Extended Fund Facility (EFF) and the first review of the $1.4 billion Resilience and Sustainability Facility (RSF), both agreed in 2024 to stabilise the economy after a severe financial crisis.

Approval of the review by the IMF Executive Board would pave the way for the next disbursement of funds. The current programme, launched in September 2024, helped stabilise Pakistan’s $370 billion economy, which was hit by soaring inflation, a weakening currency, and rising external debt.

Aurangzeb also said Pakistan plans to launch its first green Panda bond—denominated in Chinese yuan—before the end of the year and aims to return to international markets in 2026 with a bond issuance of at least $1 billion. “Euro, dollar, Sukuk, Islamic Sukuk — we’re keeping our options open,” he added.

The finance minister further said Pakistan’s privatisation drive would gain momentum in the current fiscal year, with progress expected on the sale of three power distribution companies and Pakistan International Airlines (PIA).

He expressed optimism that investor interest in PIA would increase after profitable routes to Europe and the United Kingdom were reopened, calling it “a very good proposition for investors.”