ISLAMABAD: The International Monetary Fund (IMF) has stated that Pakistan’s reform efforts under the Extended Fund Facility (EFF) programme have helped stabilise the economy and restore investor confidence, describing the country’s fiscal performance as “strong.”
Speaking at a weekly press briefing, IMF Communications Director Julie Kozack said a staff mission is scheduled to visit Pakistan from February 25 to conduct discussions on the third review under the EFF and the second review under the Resilience and Sustainability Facility (RSF).
Kozack highlighted that Pakistan has achieved a primary fiscal surplus of 1.3 percent of gross domestic product (GDP) in fiscal year 2025, in line with programme targets. She added that headline inflation has remained relatively contained and that Pakistan recorded its first current account surplus in 14 years during FY2025.
The IMF spokesperson also referred to the recently published Governance and Corruption Diagnostic Report on Pakistan, which outlines key reform proposals. These include simplifying tax policy design, ensuring a level playing field in public procurement, and strengthening transparency in asset declarations.
According to the IMF, the upcoming review discussions will assess Pakistan’s progress on agreed reform benchmarks and determine the next phase of loan disbursements. The implementation of the Governance and Corruption Diagnostic Report and the National Fiscal Pact will be central to the talks, particularly for the release of the next loan tranche amounting to $1.2 billion.
The global lender’s focus on governance, transparency, and institutional reforms signals an expanded emphasis beyond traditional macroeconomic targets. These areas are increasingly seen as critical to addressing structural weaknesses such as tax evasion, weak regulatory oversight, and corruption.
The IMF mission, led by its Pakistan Mission Chief Iva Petrova, will begin engagements in Karachi on February 25, where discussions will be held with the State Bank of Pakistan. The delegation will then proceed to Islamabad for meetings with federal and provincial authorities, scheduled from March 2 to March 11.
Progress in these discussions will determine the timing of further disbursements and the potential deployment of a technical assistance mission to support reform implementation.
