ISLAMABAD, Feb 21, 2026 — The International Monetary Fund has recognised a notable improvement in Pakistan’s economic outlook, crediting policy reforms under the Extended Fund Facility (EFF) for stabilising the economy, containing inflation, and restoring confidence among investors, ahead of a fresh round of review discussions later this month.
Speaking at a press briefing in Washington, IMF Communications Director Julie Kozack said that an IMF staff team will visit Pakistan from February 25 to conduct the third review under the EFF programme and the second review under the Resilience and Sustainability Facility (RSF). The mission is expected to be led by Mission Chief Iva Petrova.
Kozack highlighted Pakistan’s fiscal performance for the 2025 financial year as “strong,” noting that the country achieved a primary fiscal surplus of 1.3% of gross domestic product (GDP), consistent with programme targets agreed with the IMF. She also emphasised that headline inflation has remained relatively contained, contributing to macroeconomic stability.
In a significant development, Pakistan recorded its first current account surplus in 14 years during the 2025 financial year, signalling improvements in the external sector and strengthening the country’s balance-of-payments position. According to the IMF, these positive outcomes reflect the impact of structural and policy reforms implemented under the EFF programme.
The IMF mission will arrive in Karachi on February 25 to meet with the State Bank of Pakistan before proceeding to Islamabad for discussions with federal and provincial authorities. Formal review talks are scheduled to begin on March 2 and continue until approximately March 11. Successful completion of the review would make Pakistan eligible for the release of about $1 billion under the EFF and an additional $200 million under the RSF by the end of April.
Kozack also referred to the recently published Governance and Corruption Diagnostic Report on Pakistan, which proposes measures to simplify tax policy, increase transparency in asset declarations, and create a level playing field in public procurement. The IMF has placed particular emphasis on simplifying tax systems and strengthening oversight in government procurement, noting these reforms as crucial priorities under the programme.
The upcoming review will evaluate Pakistan’s progress in implementing the Governance and Corruption Diagnostic recommendations and the National Fiscal Pact. While overall performance up to end-December 2025 has been largely on track, revenue shortfalls were noted. Authorities expect these gaps to narrow following a recent Federal Constitutional Court ruling in favour of a super tax, which is likely to bolster government revenue.
The Extended Fund Facility is a longer-term IMF lending arrangement designed to help countries address structural economic weaknesses and medium-term balance-of-payments challenges. According to the Fund, Pakistan’s policy measures under the programme have contributed to macroeconomic stabilisation and renewed confidence among international financial institutions.
This positive assessment comes at a critical juncture as Pakistan prepares for IMF review talks, which will determine future disbursements and assess ongoing reform implementation across fiscal, governance, and economic management areas.
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