The International Monetary Fund (IMF) is in discussions with Pakistan for the third program review under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF). Talks are focused on external pressures affecting Pakistan’s economy.
IMF Communications Director Julie Kozack stated that the review will assess developments such as Middle East tensions, rising oil and fertilizer prices, and tightening financial conditions. She emphasized that these factors could influence Pakistan’s economic outlook.
Kozack highlighted that disruptions in the Gulf, including the closure of the Strait of Hormuz and energy infrastructure damage, have raised oil and gas prices above $100 per barrel. Fertilizer supply disruptions may also increase food prices depending on the conflict duration.
She added that higher energy prices may drive global inflation and affect financial markets, including stock prices, bond yields, and currency valuations. The IMF team will provide further clarity after concluding discussions and remains ready to support Pakistan if required.
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