The International Monetary Fund is expected to send a mission to Pakistan in the coming weeks to review the $7 billion Extended Fund Facility and the Resilience and Sustainability Facility. Successful completion could unlock approximately $1 billion under the EFF and $200 million under the RSF. Pakistan has already received $4.8 billion through both arrangements. The mission is expected to begin discussions in Karachi with State Bank of Pakistan officials before meeting the government’s economic team in Islamabad.

Bank lending to Pakistan’s private sector continued to decline during the first 45 days of the current fiscal year, while Non-Bank Financial Institutions also faced a liquidity crunch. State Bank of Pakistan data showed that businesses were repaying existing debt instead of obtaining new loans. The trend raises concerns about investment and economic activity as the government seeks greater private-sector participation to exceed its 4% GDP growth target for 2026–27.

As part of IMF-mandated governance reforms, the government has tightened rules for appointing, inducting and evaluating directors on state-owned enterprise boards. The revised framework will primarily regulate independent directors, while public officials will continue to be nominated to ex-officio board positions. The reforms aim to improve accountability, transparency and board performance across SOEs, whose combined liabilities exceed Rs9 trillion.