ISLAMABAD, September 29, 2026: Finance Minister Muhammad Aurangzeb has held a kick-off meeting with an International Monetary Fund (IMF) mission in Islamabad.

The mission is led by Iva Petrova.

The talks cover the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF) programme.

They will also cover the third review of the $1.4 billion Resilience and Sustainability Facility (RSF).

Aurangzeb briefed the IMF team on recent economic developments.

He also discussed Pakistan’s credit rating and investment climate.

The meeting comes as the economy faces risks from the prolonged conflict in the Middle East.

IMF Talks Could Unlock $1.2 Billion

Successful completion of both reviews could unlock about $1.2 billion for Pakistan.

The amount includes around $1 billion under the EFF.

Another $200 million would come under the RSF.

The funds could be released by the end of October or in early November, subject to the review process and any required waivers.

The IMF mission arrived in Pakistan on September 23.

It initially held meetings in Karachi with the State Bank of Pakistan and other stakeholders.

The team has also met officials from the finance ministry and Federal Board of Revenue.

Meetings have also taken place with the Establishment Division and provincial finance departments.

IMF Reviews Pakistan’s Reform Progress

The IMF is assessing Pakistan’s progress under its 37-month EFF programme.

The programme focuses on fiscal discipline and structural reforms.

It also aims to strengthen economic resilience and support sustainable growth.

The IMF has previously stressed reforms in public finances and state-owned enterprises.

It has also called for improvements in competition, productivity and public services.

Climate-related reforms remain part of the RSF programme.

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Procurement Rules Among Key Issues

Pakistan has recently notified the Public Procurement Rules 2026.

The new rules aim to improve transparency and competition in government procurement.

They also allow certain forms of direct contracting with state-owned enterprises.

The IMF has raised reservations about preferential treatment for SOEs in direct contracting, according to Dawn.

The new rules make the use of the E-Pak Acquisition and Disposal System (EPADS) mandatory for federal procurement.

They also introduce stronger mechanisms against conflicts of interest and procurement violations.

The framework includes blacklisting and cross-debarment provisions.

Pakistan Faces Structural Reform Challenges

The latest review will assess whether Pakistan has met key programme conditions.

Dawn reported that the government remains in breach of a structural benchmark linked to amendments to the Sovereign Wealth Fund Act.

The amendments concern governance safeguards for several state-owned enterprises.

The issue remains part of discussions with the IMF.

Pakistan has also faced challenges in meeting some reform and spending targets.

The review will determine whether any waivers are needed before the funds can be released.

The outcome will also shape Pakistan’s economic engagement with the IMF in the coming months.