WASHINGTON: The International Monetary Fund (IMF) has acknowledged visible improvements in Pakistan’s economy, noting controlled inflation and strengthened macroeconomic stability under ongoing reform initiatives.
During a press briefing in Washington, IMF Director of Communications Julie Kozack confirmed that an IMF delegation will arrive in Pakistan on February 25 to begin crucial review discussions.
The visiting team will hold talks with Pakistani authorities for the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF). The discussions will evaluate Pakistan’s progress on policy measures, structural reforms, and macroeconomic benchmarks agreed upon within the IMF-supported frameworks.
According to Kozack, policy steps implemented through the EFF have played a significant role in stabilizing the economy. These reforms have contributed to restoring investor confidence and improving fiscal management.
The IMF has advised Pakistan to further simplify its tax structure and enhance transparency, particularly in public procurement, to ensure long-term governance and institutional improvements.
On fiscal performance, Kozack highlighted that Pakistan achieved a primary surplus of 1.3 percent of GDP in fiscal year 2025, meeting program targets. The surplus reflects improved revenue collection and disciplined public spending under reform commitments.
She also noted that inflation has remained contained, easing pressure on consumers and supporting overall economic stability. In addition, Pakistan recorded a current account surplus in fiscal year 2025 for the first time in 14 years, signaling a major improvement in the country’s external sector.
The upcoming IMF review mission will be pivotal in assessing Pakistan’s compliance with agreed reforms and determining the continuation of financial assistance as the country works to sustain economic recovery and long-term stability.
