ISLAMABAD – Pakistan is bracing for make-or-break talks with International Monetary Fund as global lender’s delegation arrives on September 25 for a two-week review mission. The outcome could decide whether the country secures its next $1 billion tranche under the $7 billion Extended Fund Facility.

The review will kick off with technical huddles, before moving into policy-level negotiations involving the Finance Ministry, Energy Ministry, Planning Commission, and the State Bank. The IMF will also grill key regulators including the FBR, OGRA, NEPRA, and even hold separate sessions with all four provinces.

If Pakistan passes this tough economic exam, IMF Board is likely to greenlight the crucial $1 billion payout. Failure, however, could deal a serious blow to the economy and shatter fragile investor confidence.

The South Asian nation already pocketed $2 billion from the facility since it was signed in September 2024, while a parallel $1.3 billion climate financing deal is also on the table.

With foreign reserves under pressure and markets watching closely, the government insists it is ready for the challenge. As one insider put it, “These talks could make or break Pakistan’s financial stability.”