IMF opens fourth review in Karachi: $1bn and $200m ride on these talks

An International Monetary Fund team led by Iva Petrova began review talks with Pakistani authorities on Wednesday, with the first sessions held at the State Bank of Pakistan in Karachi. The mission covers three things at once: the fourth review under the Extended Fund Facility, the third review under the Resilience and Sustainability Facility, and the Article IV consultation the Fund runs with member countries.

"An IMF team led by Iva Petrova has started discussions with the Pakistani authorities on the review under the Extended Fund Facility and Resilience and Sustainability Facility, alongside the Article IV Consultation," said Mahir Banici, the Fund's Resident Representative in Pakistan.

What is actually on the table

The EFF is a 37-month, $7 billion arrangement approved in September 2024. The RSF, the Fund's climate window, is a 28-month arrangement worth $1.3 billion, agreed at staff level on 25 March 2025. Pakistan has drawn about $4.8 billion between the two so far.

If this review is completed, roughly $1 billion comes in under the EFF and $200 million under the RSF. That is not the whole point of the exercise for a household, though. A completed review is also what keeps the rest of the external plumbing moving: rollovers from bilateral lenders, pricing on any new Eurobond or Panda bond, and the confidence the market puts behind the rupee.

Why it shows up in your bills

Fund reviews are where the numbers behind your utility bill, your fuel receipt and your tax slab get argued over. Three of those numbers are sitting at these levels as the mission opens:

• Petrol is Rs 392.05 a litre and diesel Rs 418.96 after the 22 September notification. See petrol price and diesel price.
• The SBP policy rate is 11.5 percent, which is what sets your car and home loan pricing. See the policy rate series.
• The rupee closed at 277.20 to the dollar on Wednesday, a gain of one paisa. See the dollar rate.

The other live variable is electricity. On the same day the mission opened, the Power Division ordered a technical audit of every distribution company to map power theft and line losses, which is the sort of structural fix the Fund asks about at every review.

What to watch next

Watch for a staff-level agreement statement at the end of the mission, which is the point at which the conditions become public, and then a date for the IMF Executive Board. Until the Board approves, no money moves.

If you want to see what a change in tax rates or tariffs would do to your own numbers, our income tax calculator and electricity bill calculator run on the current notified rates.