The International Monetary Fund (IMF) on Thursday said Pakistan’s reform efforts under the ongoing $7 billion Extended Fund Facility (EFF) has helped stabilize the economy and rebuild confidence, citing improved fiscal discipline and stronger external accounts.
“Pakistan’s policy efforts under the EFF have helped stabilize the economy and rebuild confidence,” said IMF Director of Communications Julie Kozack during a press briefing, adding the country’s fiscal performance has been strong.
“Pakistan currently has a primary fiscal surplus of 1.3% of GDP in fiscal year 2025, which was in line with program targets. Headline inflation has been relatively contained, and Pakistan posted its first current account surplus in 14 years in fiscal year 2025,” she said. “And also, maybe just to highlight that the Governance and Corruption Diagnostic Report was recently published, and it includes proposals for reforms, including simplifying tax policy design, levelling the playing field for public procurement, and improving the asset declaration transparency,” she added.
Kozack noted Pakistan remains under an EFF arrangement. “We do have a staff team that is expected to visit Pakistan starting Feb. 25 for discussions on the third review under the EFF and the second review under the RSF [Resilience and Sustainability Facility],” she added. The review would assess the performance of the assigned criteria and targets for September 2025 and December 2025.