According to official sources, these discussions are taking place in Islamabad as part of the ongoing IMF review mission, where both sides are assessing government policy actions and financing needs ahead of the release of the next tranche under the Extended Fund Facility (EFF).
Sources further revealed that inflation is expected to rise in light of recent floods and external factors. During the talks, the inflation target was also discussed, with estimates indicating it will remain in the range of 7–8% for the current fiscal year. Meanwhile, foreign exchange reserves are projected to remain around USD 14.5 billion.
The current account deficit is estimated at approximately USD 1.495 billion, with exports expected at USD 32.981 billion and imports around USD 59.6 billion. This could lead to a trade deficit of nearly USD 27 billion by the end of the fiscal year. Remittances are projected to reach around USD 36 billion.
The negotiations will continue in the coming days, covering wide-ranging structural reforms, tax revenue measures, and external financing requirements. Government representatives described this latest round of talks as constructive, while the IMF emphasized that effective implementation remains a key condition for the release of funds.
