IMF acknowledges Pakistan’s economic recovery and stability ahead of crucial review talks beginning February 25 in Islamabad. The assessment matters as it will shape future financial support and reform momentum. The development directly affects Pakistan’s government, investors, and millions of citizens.
The acknowledgment came from the International Monetary Fund during a press briefing in Washington. IMF Communications Director Julie Kozack confirmed that a delegation will arrive on February 25. The mission will hold discussions under ongoing reform programs. Officials will conduct the third review under the Extended Fund Facility and the second under the Resilience and Sustainability Facility.
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Moreover, the IMF said reforms improved fiscal discipline and macroeconomic stability. It noted that economic confidence has gradually strengthened. Authorities boosted revenue collection and controlled spending. As a result, Pakistan recorded a primary fiscal surplus of 1.3 percent of GDP in fiscal year 2025. The Fund described this outcome as aligned with agreed targets.
In addition, inflation remained contained during the fiscal year. Stable prices provided relief to households and businesses. Notably, Pakistan achieved a current account surplus in fiscal year 2025. This was the first surplus in 14 years. The milestone reflected improved external sector management. However, the IMF urged further tax simplification and stronger transparency in public procurement.
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Meanwhile, the upcoming review will determine continued IMF financial support. The assessment will examine Pakistan’s compliance with reform commitments. Therefore, the mission holds major significance for economic planning. Officials expect detailed policy discussions in Islamabad. The outcome will influence investor confidence and market stability in the coming months.