WASHINGTON – International Monetary Fund (IMF) appreciated Pakistan for its bold reform agenda, calling progress “highly encouraging” and noting that recent policy efforts have played pivotal role in stabilizing economy and restoring market confidence.
According to IMF spokesperson and Director of Communications Julie Kozack, the South Asian nation is currently under the Extended Fund Facility (EFF), and IMF team will visit the country from February 25 to discuss the third EFF review and the second Resilience and Sustainability Facility (RSF) review.
Kozack stressed that Pakistan’s macroeconomic stability and gradual restoration of investor confidence are directly linked to its policy measures. The country achieved a primary fiscal surplus of 1.3% of GDP in FY2025, meeting program targets, while core inflation remained under control. Remarkably, Pakistan also recorded a current account surplus for the first time in 14 years.
IMF official highlighted recent Governance and Corruption Diagnostic Report, which outlined sweeping reform measures, including simplifying tax policy design, ensuring equal opportunities in public procurement, and enhancing transparency in asset declarations.
After second review of Pakistan’s economic reform program under EFF, the IMF Executive Board approved a $1.2 billion loan to support the country’s ongoing reforms.
In preparation for upcoming mission, Pakistan unveiled 15-point action plan responding to the Governance and Diagnostic Assessment Report. The plan focuses on identifying top 10 federal institutions with corruption risks, cutting backlog of economic disputes, reviewing judicial and commercial performance and publishing reports.
Govt plans to link electricity, gas bills to household income levels
