The International Monetary Fund has welcomed Pakistan’s recent economic reforms, highlighting that policy efforts under the IMF-supported programme have helped stabilise the economy, control inflation, and restore investor confidence, setting a positive trajectory for growth. An IMF staff team is scheduled to visit Pakistan from February 25 to conduct the third review under the Extended Fund Facility and the second review under the Resilience and Sustainability Facility.
IMF spokesperson Julie Kozack noted that Pakistan achieved a primary fiscal surplus of 1.3% of GDP in fiscal year 2025, reflecting strong fiscal management and alignment with programme targets. Headline inflation remained relatively contained, and the country recorded its first current account surplus in 14 years, indicating a gradual economic recovery.
Read more : IMF mission due in Pakistan next week for third economic review
The Governance and Corruption Diagnostic Report recently published by IMF outlines key reform proposals, including simplifying tax policies, improving transparency in public procurement, and strengthening asset declaration processes. Pakistan has responded with a detailed 15-point action plan addressing corruption vulnerabilities, targeting high-risk federal agencies, and promoting accountability in governance structures.
The plan also sets out measures to reduce the backlog of economic disputes, including developing performance assessment methodologies for courts and administrative tribunals. Pakistan aims to issue the first comprehensive report on judicial and tribunal performance, integrating diversionary and alternative dispute resolution mechanisms for effective case management.
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Legislative reforms under review include amendments to the Anti-Money Laundering Act 2010, clarifying investigative processes, definitional terms, and prosecution requirements. A Joint Working Group will finalise recommendations to strengthen money laundering investigations, with proposed amendments submitted to parliament and implemented by June 2027.
Additionally, a National Anti-Corruption Task Force, under the AML/CFT Authority, will consolidate multi-agency inputs to develop a centralised Corruption Risk Assessment Framework. This framework will evaluate vulnerabilities across organisations, enhancing coordination among NAB, FIA, SECP, FBR, and other relevant authorities to enforce accountability effectively.