IMF to Review Pakistan Funding in Late 2025 Amid 11 New Conditions

New Delhi : The International Monetary Fund (IMF) is expected to conduct its next funding review for Pakistan in the second half of 2025. This comes as part of ongoing efforts to reach an agreement with Pakistani authorities on the fiscal roadmap for the 2026 financial year.

In an official statement, the IMF confirmed that the upcoming mission linked to the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) will be scheduled for the latter half of 2025. The announcement followed the conclusion of a staff visit led by IMF official Nathan Porter. The visit focused on recent economic developments, the implementation of current programs, and Pakistan’s budget strategy for FY2026.

“We held constructive discussions with Pakistani authorities regarding their FY2026 budget proposals and broader economic policy and reform agenda under the 2024 EFF and the 2025 RSF,” Porter stated.

According to the IMF, the Pakistani government has reaffirmed its commitment to fiscal consolidation while ensuring that key social and priority sector spending is protected. The government aims to achieve a primary budget surplus of 1.6% of GDP in FY2026.

The IMF discussions also included reforms in Pakistan’s energy sector, targeting financial sustainability and lowering the cost burden on the economy. Additionally, structural reforms were discussed to support long-term growth and encourage fairer competition for business and investment.

Meanwhile, India has welcomed the IMF’s imposition of 11 new conditions for the release of further bailout funds to Pakistan. While India clarified that it is not against financial aid for genuine development, it expressed concern over the timing of the previous bailout package.

New Delhi suggested that the earlier financial support may have indirectly funded Pakistan’s rising defense expenditures, especially during heightened tensions following India’s Operation Sindoor—a military strike on terror camps in Pakistan and Pakistan-occupied Kashmir.

India had urged the IMF to reconsider its assistance, arguing that Pakistan continues to allow its territory to be used for terrorist activities against Indian citizens. The 11 new conditions are seen as a measure to ensure greater accountability before further funds are released.