ISLAMABAD – The International Monetary Fund (IMF) on Friday said that encouraging progress had been made in negotiations with Pakistan, adding that the talks were likely to be finalised in the coming days.

The IMF issued a statement after concluding discussions with Pakistani authorities held from February 25 to March 11 regarding the country’s economic programme.

The Fund appreciated Pakistan’s performance in implementing reforms and acknowledged progress in initiatives related to climate and environmental resilience. However, a staff-level agreement under the $7 billion Extended Fund Facility (EFF) programme has not yet been reached between the IMF and Pakistani officials.

The IMF said that both sides are close to reaching consensus on a revised economic and fiscal framework. The statement noted that Pakistan had made significant progress in advancing its reform agenda and taking measures to address climate change.

The IMF said that overall implementation of the programme had largely remained in line with the commitments made by the government. Discussions during the talks focused on reducing the fiscal deficit and strengthening public finances.

The negotiations also covered reforms in the energy sector aimed at improving efficiency and sustainability. The IMF held discussions with Pakistan’s economic team on increasing allocations for social protection, health and education sectors.

The Fund emphasised the need to maintain a tight monetary policy to ensure inflation remains under control.

The IMF further stated that the economic impact of the ongoing crisis in the Middle East was also discussed during the talks, including its potential implications for Pakistan’s economy.

It added that both sides would continue their engagement and that the discussions were expected to be finalised within the next few days.