The International Monetary Fund (IMF) announced that Pakistan is currently operating under an Extended Fund Facility (EFF) arrangement, with an IMF staff team scheduled to visit the country from February 25 onwards.
During a press briefing in Washington, IMF Communications Director Julie Kozack revealed that the upcoming visit will focus on discussions regarding the Third Review under the EFF and the Second Review under the Resilience and Sustainability Facility (RSF).
Kozack highlighted the positive impact of Pakistan's policy efforts under the EFF, citing that these measures have successfully stabilized the economy and restored confidence. She noted the strong fiscal performance, mentioning that Pakistan has achieved a primary fiscal surplus of 1.3% of GDP in fiscal year 2025, aligning with program targets.
Furthermore, Kozack shared that headline inflation has been relatively controlled and emphasized that Pakistan recorded its first current account surplus in 14 years during fiscal year 2025.
In addition, she referenced the recently published Governance and Corruption Diagnostic Report, which includes recommendations for reforms such as simplifying tax policy design, ensuring fairness in public procurement, and enhancing transparency in asset declaration.
The IMF staff team is set to engage in discussions with Pakistani authorities to review key program components, including the third review under the $7 billion EFF bailout and the second review under the RSF, aimed at supporting countries vulnerable to climate-related challenges.
Over the past year, Pakistan has implemented stringent fiscal and structural reforms, including tax hikes, subsidy reductions, and tighter monetary policies, to stabilize its economy in the wake of severe inflation, depleting foreign reserves, and default concerns back in 2023.
Kozack reiterated the IMF's commitment to the program's objectives of restoring macroeconomic stability, bolstering external reserves, and enhancing Pakistan's resilience to climate shocks following recent devastating floods. She commended Pakistan's progress in implementing policies that have already yielded tangible improvements.
