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Pakistan’s economy shows signs of recovery, says IMF

IMF Director of Communications Julie Kozack said IMF delegation will visit Pakistan starting February 25.

WASHINGTON: The International Monetary Fund (IMF) has recognized improvements in Pakistan’s economy.

IMF Director of Communications Julie Kozack said during a press briefing in Washington that an IMF delegation will visit Pakistan starting February 25.

During the visit, the delegation will discuss the third review of the Extended Fund Facility (EFF) and the second review of the Resilience and Sustainability Facility (RSF). Kozack noted that policies under the EFF have contributed to macroeconomic stability in Pakistan.

Pakistan’s fiscal performance in FY2025 remained strong, achieving a primary fiscal surplus of 1.3% of GDP, meeting the program targets. Inflation in the country has remained under control.

For the first time in 14 years, Pakistan recorded a current account surplus during FY2025, reflecting an improved external sector balance.

The IMF’s assessment underscores progress in economic management and policy implementation, ahead of the upcoming program reviews.

The IMF also highlighted the recently published Governance and Corruption Diagnostic Report, which includes recommendations for reforms and emphasizes the importance of a simpler, more transparent tax policy to support sustainable economic growth.

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