The International Monetary Fund (IMF) has noted visible signs of economic stabilization in Pakistan, pointing to controlled inflation and improving macroeconomic indicators under the country’s ongoing reform agenda supported by the Fund.
During a press briefing in Washington, IMF Director of Communications Julie Kozack confirmed that an IMF delegation is scheduled to arrive in Pakistan on February 25 to begin a fresh round of review talks with the authorities.
According to Kozack, the visiting team will hold discussions for the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF). The mission will assess Pakistan’s progress in meeting policy commitments, advancing structural reforms, and achieving key macroeconomic targets outlined in the IMF-backed programs.
She observed that policy steps implemented under the EFF arrangement have played a pivotal role in stabilizing the country’s economy. These measures, she said, have helped rebuild investor confidence, strengthen fiscal management, and restore a degree of predictability to economic policymaking.
The IMF has encouraged Pakistan to continue reforms aimed at broadening the tax base, simplifying the taxation structure, and enhancing transparency. Greater openness and accountability in public procurement processes were also highlighted as essential steps to ensure long-term improvements in governance and institutional performance.
On the fiscal front, Kozack pointed out that Pakistan posted a primary surplus of 1.3 percent of GDP in fiscal year 2025, in line with agreed program targets. The surplus reflects improved revenue collection and tighter expenditure management undertaken by the government as part of its reform strategy.
Inflationary pressures, which had previously strained households and businesses, have eased considerably, according to the IMF. Stable prices have provided some relief to consumers and contributed to broader macroeconomic stability.
In a notable development, Pakistan recorded a current account surplus in fiscal year 2025 — the first such surplus in 14 years. The achievement marks a significant turnaround in the country’s external account position and signals improved balance-of-payments management.
The upcoming IMF review will be critical in determining the continuation of financial assistance under both facilities. It will also serve as a key assessment of Pakistan’s commitment to sustaining reforms as it seeks to consolidate economic gains and secure durable, long-term stability.
