The International Monetary Fund (IMF) affirmed Thursday that policy measures enacted by Pakistan under its Extended Fund Facility (EFF) have contributed to economic stabilization and a restoration of confidence, according to a statement from IMF Communications Director Julie Kozack.
Responding to inquiries regarding Pakistan’s adherence to the Fund’s stipulations, Kozack stated that “Pakistan’s policy efforts under the EFF have helped stabilise the economy and rebuild confidence.” She further noted the country’s “strong” fiscal performance, citing a primary fiscal surplus of 1.3 percent of Gross Domestic Product (GDP) that aligns with program targets.
Kozack also highlighted positive economic indicators, including contained headline inflation and Pakistan’s first current account surplus in 14 years, recorded in fiscal year 2025.
An IMF team is scheduled to arrive in Pakistan on February 25 to initiate discussions concerning the third review under the EFF and the second review under the Resilience and Sustainability Facility (RSF). This visit, as reported by multiple sources including AP7AM and Arab News PK, is a crucial step in assessing Pakistan’s continued progress.
The IMF’s recent Governance and Corruption Diagnostic report was also referenced by Kozack, who emphasized its inclusion of “proposals for reforms, including simplifying tax policy design, levelling the playing field for public procurement and improving the asset declaration transparency.”
The upcoming mission, led by Iva Petrova, will conduct a nearly two-week review concluding on March 11. Discussions will center on the performance through the end of December 2025, with a particular focus on revenue shortfalls – an issue authorities believe may be mitigated by a recent favorable ruling from the Federal Constitutional Court regarding a super tax. The review will also lay the groundwork for the upcoming fiscal year 2026-27 budget, especially concerning provincial finances, according to Dawn.
Successful completion of the review is expected to unlock approximately $1 billion (760 million Special Drawing Rights) under the EFF, alongside an additional $200 million from the RSF by the end of April. The EFF is designed as a longer-term lending program to address fundamental economic vulnerabilities and balance-of-payments challenges.
