Overview
- An IMF staff mission led by Iva Petrova has begun formal talks in Islamabad for the fourth review of the $7 billion EFF and the third review of the RSF to seek about $1.2 billion in combined disbursements.
- The talks are focused on Pakistan’s fiscal and external data with the Fund pressing for an explanation of an Rs853 billion statistical discrepancy across federal and provincial accounts.
- Pakistani officials told the mission the Gulf conflict and Strait of Hormuz disruption cut first‑quarter revenue by an estimated Rs144 billion, while the FBR says it remains confident of meeting the July–September target of Rs3.053 trillion.
- The IMF has urged faster reforms on state‑owned enterprises, a plan to resolve large gas and power circular debt, and delivery of subsidies as targeted transfers through programs like the Benazir Income Support Programme.
- The government briefed the mission on a mandatory digitised asset‑declaration for about 10,000 federal civil servants due by October 30, and any staff‑level agreement will need to reconcile data gaps and missed health and education spending targets before the IMF Board will approve funds.