Islamabad braces for an IMF team landing on February 25 to scrutinize the progress of its economic overhaul under the Extended Fund Facility (EFF). This high-stakes visit comes as Pakistan navigates a delicate path to fiscal recovery.
In a recent press conference, IMF’s Julie Kozack detailed the mission’s focus: the third EFF review and second Resilience and Sustainability Facility (RSF) check. ‘These discussions will cover policy targets and reform pledges,’ she explained, emphasizing their role in upholding program standards.
Positive strides were evident in her remarks. Pakistan’s determined policy actions have fostered economic steadiness and restored investor trust. Fiscal results impressed, delivering a 1.3% GDP primary surplus in FY2025—right on target. Inflation remained manageable, while the current account flipped to surplus after 14 long years, a milestone achievement.
Governance took center stage too. The government’s fresh assessment report advocates for streamlined taxation, equitable procurement processes, and clearer asset reporting to combat corruption. The visiting experts will probe advancements in budgeting discipline, price stability, foreign exchange resilience, and broader economic restructuring.
For years, Pakistan has grappled with payment imbalances and rampant inflation, forcing repeated turns to IMF bailouts. The EFF’s structured aid demands tough reforms, with periodic reviews gating fund releases. This upcoming evaluation could define the next phase of support, testing Islamabad’s resolve against domestic and international headwinds.