The International Monetary Fund has said Pakistan’s economic reforms under its current programme have helped bring stability and restore confidence, pointing to better fiscal management and stronger external accounts.
Speaking at a media briefing, IMF Director of Communications Julie Kozack said Pakistan’s policy steps under the Extended Fund Facility have started to show results.
She said the country’s fiscal performance has been strong. Pakistan recorded a primary fiscal surplus of 1.3 percent of GDP in the fiscal year 2025, in line with programme targets. A primary surplus means the government’s revenues were higher than its non interest spending.
Inflation has also remained relatively contained compared to previous spikes. In another key development, Pakistan posted its first current account surplus in 14 years in fiscal year 2025. This suggests the country earned more from exports and remittances than it spent on imports and other payments abroad.
Kozack also referred to the recently published Governance and Corruption Diagnostic Report. The report proposes a series of reforms. These include simplifying tax policy, creating fairer rules in public procurement, and improving transparency in asset declarations. The aim is to strengthen institutions and build public trust.
IMF team to visit on February 25
Pakistan remains under the Extended Fund Facility arrangement. Kozack said an IMF staff team is expected to visit the country from February 25. The visit will focus on the third review under the EFF and the second review under the Resilience and Sustainability Facility.
The review will assess Pakistan’s progress against agreed targets for September 2025 and December 2025. These targets cover fiscal discipline, external stability and structural reforms.
Pakistan is working to meet the conditions of its 7 billion dollar EFF programme. The facility is designed to help countries deal with deep rooted economic weaknesses and medium term balance of payments problems.
Earlier, Finance Minister Muhammad Aurangzeb told reporters after a Senate Standing Committee on Finance and Revenue meeting that there was no shortfall in external financing.
In a recent report, Topline Securities said Pakistan is likely to meet almost all seven quantitative performance criteria set under the ongoing IMF programme.
The coming review is expected to be closely watched by investors and markets, as it will signal whether the reform path remains on track and whether further support from the IMF will continue without delay.
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