ISLAMABAD: The International Monetary Fund (IMF) has acknowledged a notable improvement in Pakistan’s economic conditions, citing policy reforms implemented under the country’s ongoing IMF-supported programme.
According to IMF Communications Director Julie Kozack, Pakistan’s recent policy efforts have contributed to macroeconomic stabilisation and helped restore confidence in financial markets. The assessment comes as the country continues to implement reforms under the Extended Fund Facility (EFF).
The IMF highlighted Pakistan’s strengthened fiscal performance, noting that the country achieved a primary fiscal surplus of approximately 1.3 percent of GDP in fiscal year 2025, meeting programme targets. Improved revenue collection and tighter fiscal discipline were identified as key factors behind the progress.
Pakistan’s external sector has also shown signs of recovery, with the country recording its first current account surplus in over a decade. The development signals reduced pressure on foreign exchange reserves and improved balance-of-payments stability.
Inflation, which surged during the recent economic crisis, has begun to moderate, reflecting the impact of monetary tightening and stabilisation measures. IMF officials emphasised that these trends indicate a gradual easing of macroeconomic pressures.
An IMF mission is expected to visit Pakistan later this month to conduct programme review discussions, including assessments under both the Extended Fund Facility and the Resilience and Sustainability Facility.
Despite recognising the progress, the IMF stressed the importance of maintaining reform momentum. Continued fiscal discipline, structural reforms, and prudent economic management will be essential to sustaining stability and supporting long-term growth.
The Fund described Pakistan’s recent performance as a shift toward economic stabilisation rather than a full recovery, underscoring the need for consistent policy implementation in the months ahead.
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