Pakistan is set to receive an International Monetary Fund delegation beginning February 25, as review discussions resume under ongoing IMF-supported programs aimed at reinforcing macroeconomic stability and reform momentum. The visit will focus on program performance benchmarks and policy implementation at a time when the country has reported improvements in key fiscal and external indicators. Speaking at a press briefing in Washington, IMF Director of Communications Julie Kozack confirmed that the delegation will conduct review discussions under the Extended Fund Facility and the Resilience and Sustainability Facility. The mission will evaluate Pakistan’s Third Review under the EFF and Second Review under the RSF, with particular attention to fiscal discipline, structural reforms, and social sector allocations.
The review arrives after Pakistan posted its first current account surplus in 14 years, signaling a notable shift in its external balance trajectory. The primary fiscal surplus reached 1.3 percent of GDP in fiscal year 2025, reflecting tighter expenditure controls and improved revenue performance. Inflation has remained relatively contained, contributing to broader economic stability and supporting confidence among domestic and external stakeholders. Policy focus in recent quarters has centered on restoring investor trust, rebuilding fiscal buffers, and strengthening governance frameworks. Authorities have also targeted key productive sectors, including energy, agriculture, and manufacturing, as part of a broader strategy to secure sustainable growth. According to IMF commentary, consistent implementation of structural reforms and fiscal consolidation will be critical to preserving macroeconomic gains and ensuring durable access to international capital markets.
During the upcoming mission, discussions are expected to cover revenue mobilization, public finance management, governance adjustments, and social protection measures. These elements form core pillars of IMF-supported frameworks designed to stabilize economies facing fiscal and external pressures while safeguarding vulnerable populations. Beyond Pakistan, the IMF briefing outlined broader regional and global developments. In South Asia, India’s economy continues to outperform expectations, with real GDP growth projected at 7.3 percent for fiscal year 2025-26. Strong domestic demand and infrastructure investment are supporting expansion, while gradual fiscal consolidation and capital expenditure plans aim to rebuild fiscal space without constraining growth.
The IMF Managing Director recently visited Sri Lanka to assess cyclone-affected regions and is scheduled to travel to India for the India AI Summit, alongside bilateral engagements with policymakers and business leaders. In Europe, the IMF is preparing to present a new four-year $8.1 billion Extended Fund Facility program for Ukraine to its Executive Board, following the completion of prior actions by Ukrainian authorities. Economic growth in Ukraine is projected below 2 percent in 2025 due to war-related disruptions, alongside ongoing fiscal and current account deficits and refugee displacement pressures.
Sub-Saharan Africa’s outlook has improved, with growth forecast at 4.6 percent in 2026, supported by macroeconomic stabilization and reform progress in several economies. Nonetheless, vulnerabilities persist for conflict-affected states and oil exporters contending with weaker commodity prices. In the Americas, IMF staff are finalizing the United States Article IV consultation, with a report due on February 25 examining debt dynamics, trade balances, and overall economic conditions. Argentina is undergoing its Second Review under the Extended Fund Facility, with emphasis on reserve accumulation, monetary stability, and labor market reforms.
Within the Middle East and North Africa, Lebanon continues dialogue on a comprehensive reform package centered on fiscal consolidation and banking sector restructuring. Egypt is advancing through its Fifth and Sixth Reviews under the EFF and RSF, unlocking a combined $2.3 billion disbursement to support state enterprise restructuring and social safety nets. Venezuela remains outside formal IMF financial engagement due to recognition constraints, though limited technical exchanges persist. Against this global backdrop, the forthcoming IMF mission to Pakistan will serve as a pivotal checkpoint in the country’s stabilization path, with policymakers aiming to consolidate fiscal gains while navigating external uncertainties and reform commitments.
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