An International Monetary Fund (IMF) mission is set to arrive in Pakistan on February 25 for the third economic review talks under the ongoing loan program, a key step that could unlock $1.2 billion in fresh funding.

The 15-day visit will focus on assessing Pakistan’s economic performance from July to December 2025 and reviewing progress on agreed reform targets.

The IMF delegation will hold negotiations with officials from the Ministry of Finance, the State Bank of Pakistan, the Federal Board of Revenue (FBR), and other relevant ministries and institutions.

The talks are part of the third review of Pakistan’s $7 billion loan program under the Extended Fund Facility (EFF). If the negotiations are successful and approved by the IMF Executive Board, Pakistan will receive $1.2 billion.

This amount includes a $1 billion installment under the EFF program and an additional $200 million under climate financing.

Economic performance, reform progress

During its two-week stay, the IMF mission will review Pakistan’s macroeconomic performance between July and December 2025.

The government’s economic team will brief the delegation on progress in key policy reforms, including taxation measures, energy sector restructuring, foreign exchange reserves, and monetary policy.

Officials will also provide updates on the privatization program, including developments related to Pakistan International Airlines (PIA), as well as the transfer of the Tax Policy Office to the Ministry of Finance. Budget-related reforms and other structural changes will also come under discussion.

Revenue targets, fiscal performance

According to sources, the government has achieved several important fiscal benchmarks. These include a primary budget surplus, provincial cash surplus, and provincial tax targets.

However, the overall six-month federal tax collection target was not fully met.

Official statistics show that the FBR collected Rs6,161 billion in taxes during the first six months, falling short by Rs339 billion. Revenue collection under the trader-friendly scheme and from retailers also remained below expectations.

Meanwhile, provinces posted a cash surplus of Rs1,179 billion during the same six-month period.

So far, Pakistan has received $3.3 billion under the EFF and climate financing arrangements.

An additional $3.7 billion is scheduled to be disbursed in six-monthly installments through 2027, subject to successful reviews and compliance with IMF conditions.