The lender said policy steps taken by Pakistan under the Extended Fund Facility EFF have “helped stabilise the economy and rebuild confidence”.
The statement was made by IMF Communications Director Julie Kozack during a weekly press briefing. Her remarks came before an IMF mission, led by Iva Petrova, is set to visit Pakistan to review the $7 billion EFF and the $1.1bn Resilience and Sustainability Facility.
The visit, expected to last nearly two weeks, will focus on Pakistan’s performance under the programme. Officials will also discuss budget proposals for the next fiscal year 2026-27, especially matters related to provincial finances.
Responding to a question about Pakistan’s progress, Kozack said, “Pakistan’s policy efforts under the EFF have helped stabilise the economy and rebuild confidence.”
She added that fiscal performance has been “strong”. According to her, Pakistan has achieved a primary fiscal surplus of 1.3 per cent of gross domestic product, which is “in line with programme targets”.
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“Headline inflation has been relatively contained. And Pakistan posted its first current account surplus in 14 years in FY25,” Kozack added.
The IMF team is expected to begin discussions from February 25 under the third review of the EFF and the second review of the Resilience and Sustainability Facility.
Kozack also referred to the IMF’s Governance and Corruption Diagnostic report, which “includes proposals for reforms, including simplifying tax policy design, levelling the playing field for public procurement, and improving the asset declaration transparency”.
The coming review is important because its outcome could affect future disbursements and market sentiment. Investors and businesses are closely watching the talks.
The IMF’s statement gives positive signals. Confidence may improve if the review goes well. Budget talks will be very important this time. Any delay or disagreement could create pressure again.
