WASHINGTON: The International Monetary Fund (IMF) has acknowledged signs of economic improvement in Pakistan, stating that inflation has remained under control while macroeconomic stability has strengthened under ongoing reform programs.
Speaking at a press briefing in Washington, IMF Director of Communications Julie Kozack announced that an IMF delegation will visit Pakistan starting February 25 to conduct important review discussions.
According to Kozack, the visiting mission will engage with Pakistani authorities for the third review under the Extended Fund Facility (EFF) program and the second review under the Resilience and Sustainability Facility (RSF). These discussions will assess Pakistan’s progress on policy implementation, structural reforms, and macroeconomic targets agreed under the IMF-supported programs.
She acknowledged that policy measures taken under the EFF have contributed significantly to stabilizing Pakistan’s economy.
The reforms have helped restore economic confidence and improve fiscal discipline.
The IMF has also recommended further simplification and enhancement of transparency in the tax system, while emphasizing the need for greater transparency in public procurement processes to ensure sustainable governance improvements.
Highlighting fiscal performance, Kozack noted that Pakistan recorded a primary fiscal surplus of 1.3 percent of GDP in fiscal year 2025, aligning with program targets.
This reflects stronger revenue mobilization efforts and expenditure controls undertaken by the government as part of its reform commitments.
She further stated that inflation in Pakistan has remained contained, providing relief to consumers and supporting macroeconomic stability. Notably, Pakistan achieved a current account surplus in fiscal year 2025 for the first time in 14 years, marking a significant milestone for the country’s external sector performance.
The upcoming IMF review mission is expected to play a crucial role in determining the continuation of financial support and assessing Pakistan’s adherence to agreed economic reforms, as the country seeks to consolidate gains and maintain long-term economic stability.
