IMF-Pakistan SLA delay holds up $1.25 billion loan tranche

The International Monetary Fund (IMF) and Pakistan have failed to reach a staff-level agreement (SLA) as the lender’s 11-day visit to the country concluded on Wednesday. This will lead to delays in the release of loan tranches totaling around $1.25 billion under a 37-month Extended Fund Facility (EFF) and 28-month Resilience and Sustainability Facility (RSF).

IMF, Pakistan make ‘significant progress’ toward staff-level agreement

However, financial experts anticipate the two sides will work out their issues and reach an SLA in coming weeks.

Saad Hanif, Head of Research, Ismail Iqbal Securities, projected Pakistan and the IMF would reach an SLA within two to four weeks, and would greenlight the release of the next tranches within another three to six weeks.

Meanwhile Muammad Awais Ashraf, Director Research, AKD Securities, said the two
would reach an SLA in the two weeks or latest by the end of October.

Both experts told media that agreements had been reached on major economic and climate targets under the second economic review of the EFF and the first review of RSF during September 28 to October 8, 2025, and that the pending issues were minor.

Ashraf explained Pakistan “will get two tranches of RSF worth SDR76.9 million each, totaling at SDR153.8 million (equivalent to $209.7 million). We [Pakistan] will also receive
another $1,036 million under EFF.” This adds up to around $1.25 billion.

Special drawing rights, or SDRs, are supplementary foreign exchange reserve assets defined and maintained by the IMF.

Ashraf said the IMF wanted Pakistan’s provinces to work on achieving a budget surplus and revise down the Federal Board of Revenue (FBR)’s revenue collection target in the wake of the ongoing floods, which were impacting the economic growth.

“Pakistan has won IMF confidence under the previous loan programmes. The availability of the option to hold meeting online meant the two sides will continue deliberations and talk about pending issues, which should be sorted out over the next couple of week,” Ashraf said.

Meanwhile, the IMF has released a statement saying: “The IMF mission and the Pakistani authorities made significant progress toward reaching an SLA on the second review under the 37-month Extended Arrangement under the EFF and on the first review of the 28-month arrangement under the RSF“.

“Program implementation remains strong, and broadly aligned with the authorities’ commitments,“ it said.