An International Monetary Fund delegation is scheduled to arrive in Pakistan from February 25 to initiate discussions on the third review under the Extended Fund Facility (EFF), according to official sources. The visit comes at a critical stage for the country’s economic programme, as authorities seek to consolidate fiscal gains and address external-sector pressures.
During the visit, negotiations will also take place for the second review under the Resilience and Sustainability Facility (RSF), reflecting the IMF’s broader engagement with Pakistan on structural resilience and climate-linked reforms. As part of its engagements, the delegation is expected to travel to Karachi and hold meetings at the State Bank of Pakistan, alongside discussions with finance ministry officials and other stakeholders.
The review will assess Pakistan’s performance against quantitative and structural benchmarks set for September 2025 and December 2025 under the ongoing programme. Islamabad is working to meet conditions attached to the $7 billion EFF arrangement, which is designed to help countries address deep-rooted economic imbalances and medium-term balance-of-payments vulnerabilities.
Officials maintain that Pakistan’s fiscal performance has shown measurable improvement. Sources indicate that the country recorded a primary fiscal surplus of 1.3 percent of GDP in fiscal year 2025, aligning with programme targets. Notably, Pakistan also posted its first current account surplus in 14 years during the same fiscal year, signaling improved external-sector stability.
The IMF’s Director of Communications, Julie Kozack, recently acknowledged these developments during a press briefing in Washington. Responding to a question about Pakistan’s progress, she stated that policy measures implemented under the EFF have helped stabilize the economy and restore confidence. She highlighted stronger fiscal discipline, relatively contained headline inflation, and improved external accounts as key indicators of progress.
Kozack also referenced the recent publication of a governance and corruption diagnostic report, which outlines reform proposals aimed at strengthening institutional transparency. The report includes recommendations to simplify tax policy design, ensure a level playing field in public procurement, and enhance asset declaration transparency — measures that align with the IMF’s emphasis on governance reforms as a pillar of sustainable economic recovery.
The upcoming review discussions are expected to focus on further enhancing revenue collection, advancing governance reforms, and strengthening social protection initiatives. These areas remain central to Pakistan’s commitments under the EFF framework, particularly as the government seeks to balance fiscal consolidation with targeted support for vulnerable segments of the population.
Finance Minister Muhammad Aurangzeb has previously stated, following a meeting of the Senate Standing Committee on Finance and Revenue, that there is no shortfall in external financing. His remarks were aimed at reinforcing confidence in Pakistan’s external funding outlook as the review process unfolds.
Meanwhile, brokerage firm Topline Securities noted in a recent report that Pakistan is likely to meet nearly all seven Quantitative Performance Criteria (QPCs) set under the IMF programme. If confirmed during the review, this would signal continued adherence to programme benchmarks and potentially unlock the next tranche of funding under the EFF arrangement.
The IMF delegation’s visit underscores the ongoing importance of multilateral engagement in Pakistan’s economic stabilization strategy. As policymakers work to sustain fiscal consolidation, rebuild foreign exchange buffers, and implement governance reforms, the outcome of the third EFF review and second RSF review will play a pivotal role in shaping investor sentiment and the country’s near-term economic trajectory.
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