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.

The government has agreed with the International Monetary Fund to cap the Federal Board of Revenue’s outstanding tax refund stock at Rs390 billion, the Senate Standing Committee on Finance and Revenue was informed. The ceiling restricts the FBR from withholding refunds beyond the agreed limit. Officials said the tax authority disbursed approximately Rs197 billion in refunds during the first two months of the current fiscal year, compared with Rs157 billion in the same period last year. Refund payments consequently increased by Rs40 billion year-on-year.

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.