The International Monetary Fund (IMF) has reported “encouraging progress” in its discussions with Pakistan, stating that the negotiations are expected to be finalized in the coming days.

The IMF issued a statement summarizing talks held from February 25 to March 11. The Fund praised Pakistan’s performance in implementing reforms and advancing environmental initiatives. However, a staff-level agreement under the $7 billion Extended Fund Facility (EFF) program has not yet been reached between the IMF and Pakistani authorities.

According to the statement, both sides are close to agreeing on a revised economic and fiscal framework. Pakistan has reportedly made good progress on its reform agenda and has taken steps to address climate change.

The IMF noted that overall program implementation has largely aligned with prior commitments. Discussions focused on reducing the fiscal deficit and strengthening public finances. Negotiations also covered reforms in the energy sector to improve efficiency, as well as increasing expenditures on social protection, health, and education.

The IMF emphasized the importance of maintaining a tight monetary policy to control inflation. The economic effects of the Middle East conflict were also discussed, including potential impacts on Pakistan. The Fund reiterated that the talks are expected to be finalized within the next few days.