IMF To Review Pakistan's Funding In Second Half Of 2025

According to an official IMF statement, it would maintain ongoing discussions with Pakistani authorities to reach an agreement on the 2026 fiscal year budget terms.

The IMF has imposed 11 new conditions on Pakistan for the release of the next tranche of its bailout package, as the country continues to harbour terrorists.

Source : United Nations

The International Monetary Fund (IMF) is expected to conduct the next funding review for Pakistan in the second half of 2025.

According to an official IMF statement, it would maintain ongoing discussions with Pakistani authorities to reach an agreement on the 2026 fiscal year budget terms.

"The next mission associated with the next Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews is expected in the second half of 2025," according to the IMF.

An IMF mission, led by Nathan Porter, has concluded its staff visit, which focused on recent economic developments, programme implementation, and the budget strategy for fiscal year (FY) 2026.

"We held constructive discussions with the authorities on their FY2026 budget proposals and broader economic policy, and reform agenda supported by the 2024 EFF and the 2025 RSF," said Porter.

The authorities reaffirmed their commitment to fiscal consolidation while safeguarding social and priority expenditures, aiming for a primary surplus of 1.6 per cent of GDP in FY2026, he added.

Discussions also covered ongoing energy sector reforms aimed at improving financial viability and reducing the high-cost structure of Pakistan's power sector, as well as other structural reforms which will help foster sustainable growth and promote a more level playing field for business and investment, the IMF statement added.

India has said it is "thankful" for the 11 additional conditions imposed by the IMF on Pakistan, while clarifying that it is not opposed to financial assistance meant for genuine developmental purposes.

At the same time, New Delhi has raised serious concerns over the timing of the recent bailout package, suggesting that the funds may have indirectly supported Pakistan's rising defence spending.

The bailout came when Pakistan was retaliating to India's Operation Sindoor -- a military strike on terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK).

India had asked it to reconsider the bailout as Pakistan allows terrorists to use its soil for launching state-sponsored attacks against Indian citizens.

The IMF has imposed 11 new conditions on Pakistan for the release of the next tranche of its bailout package, as the country continues to harbour terrorists.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)