An International Monetary Fund (IMF) staff delegation is set to arrive in Islamabad on February 25 for a critical assessment of Pakistan’s ongoing economic reform program. This visit falls under the Extended Fund Facility (EFF), a lifeline aimed at stabilizing the nation’s fragile finances.
IMF Communications Director Julie Kozack announced the development during a press briefing, outlining the agenda. The team will conduct the third review under the EFF and the second under the Resilience and Sustainability Facility (RSF). These evaluations will scrutinize Pakistan’s adherence to policy benchmarks and reform commitments.
Kozack highlighted notable progress in key areas. ‘Pakistan’s policy efforts under the EFF have contributed to economic stabilization and confidence building,’ she noted. Fiscal performance stood out, with a primary fiscal surplus of 1.3% of GDP for FY2025, aligning perfectly with program targets.
Inflation has been relatively contained, and for the first time in 14 years, Pakistan recorded a current account surplus in FY2025. These improvements signal a cautious recovery from years of balance-of-payments crises and soaring inflation rates that have plagued the economy.
The IMF also praised governance reforms. A recent government report on governance and anti-corruption proposes simplifying tax policies, ensuring fair public procurement, and enhancing transparency in asset declarations. During the visit, the team will delve into fiscal consolidation, inflation control, external stability, and structural reforms.
Pakistan’s reliance on IMF programs underscores its chronic economic vulnerabilities. The EFF provides long-term financial support tied to deep structural changes. Successful reviews unlock subsequent tranches, keeping the reform momentum alive. As the delegation arrives, all eyes are on whether Pakistan can sustain this trajectory amid global uncertainties.