Islamabad, Feb 20 (.) The policy measures implemented by the Pakistani administration under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) have contributed to financial stabilisation for the nation’s dwindling economy, leading to the restoration of investor confidence, the global money lender’s spokesperson said on Thursday.
The IMF’s Communications Director Julie Kozack made the remarks during a weekly press briefing, while responding to a question about Islamabad’s overall progress in meeting the programme’s conditions under its $7 billion EFF commitment.
“Pakistan’s policy efforts under the EFF have helped stabilise the economy and rebuild confidence,” Kozack said, noting improvements across several key macroeconomic indicators.
Describing fiscal performance as being “strong,” she highlighted that Pakistan has achieved a primary fiscal surplus of 1.3% of its GDP, which was in line with its agreed programme targets.
The primary surplus, she noted, excludes interest payments on debt, and is overall viewed as a critical benchmark under the IMF framework, reflecting tighter expenditure controls and revenue mobilisation efforts.
Kozack added that headline inflation has remained “relatively contained,” a significant shift from the sharp price pressures seen in previous years.
She also pointed to Pakistan posting its first current account surplus in 14 years during fiscal year 2025, describing it as a notable milestone in correcting external imbalances.
The IMF official confirmed that a staff mission is scheduled to visit Pakistan starting February 25 to conduct discussions on the third review under the EFF and the second review under the Resilience and Sustainability Facility (RSF), a complementary financing window aimed at supporting climate resilience and structural reforms, reports sources.
An IMF delegation led by Iva Petrova is expected to hold talks in Islamabad which will last for almost two-weeks, before concluding on March 11.
The review period will assess performance as of end-December 2025, which is noted to have met the programme benchmarks so far, although authorities have acknowledged a revenue shortfall.
Officials believe the shortfall could narrow following a recent super tax ruling by the Federal Constitutional Court that went in the government’s favour, potentially strengthening revenue collection in the coming months.
The upcoming discussions are also expected to cover preliminary budget proposals for fiscal year 2026-27. As such, special attention will be paid to provincial fiscal coordination, expenditure management and revenue targets to ensure continued compliance with the global money lender’s programme objectives.
Kozack also referenced the IMF’s recent Governance and Corruption Diagnostic report on Pakistan, which includes reform recommendations such as simplifying tax policy design, levelling the playing field in public procurement, and enhancing transparency in asset declaration systems.
If the third review is successfully completed, Pakistan would become eligible for the disbursement of approximately $1 billion (about 760 million Special Drawing Rights) under the EFF, along with an additional $200 million under the RSF, potentially by the end of April.
. . PRS