Islamabad, February 20, 2026 – The International Monetary Fund (IMF) on Friday welcomed Pakistan’s reform progress, highlighting that policy measures under its Extended Fund Facility (EFF) have helped stabilize the economy and restore market confidence.
According to IMF spokesperson Julie Kozack, an IMF staff team is scheduled to visit Pakistan starting February 25 for discussions on the third review of the EFF and the second review under the Resilience and Sustainability Facility (RSF).
Kozack noted that Pakistan’s policy efforts have contributed to macroeconomic stabilization, with the country posting a primary fiscal surplus of 1.3% of GDP in fiscal year 2025, in line with programme targets. Headline inflation has remained contained, and Pakistan achieved its first current account surplus in 14 years during FY2025.
The IMF also highlighted the recently published Governance and Corruption Diagnostic Report, which outlines reforms including simplifying tax policy, improving transparency in asset declarations, and leveling the playing field in public procurement.
In preparation for the upcoming mission, Pakistan has developed a 15-point action plan addressing the report’s recommendations. Key steps include identifying the top 10 high-risk federal agencies, reducing the backlog of economic disputes, and implementing a judicial performance assessment framework with predictive and analytical tools.
The government will also conduct a legislative review of the Anti-Money Laundering Act (2010) to clarify processes, strengthen investigative powers, and remove ambiguities regarding predicate offenses. Amendments are expected to be tabled in parliament and implemented by June 2027.
Additionally, a centralized Corruption Risk Assessment Framework will be developed under the AML/CFT Authority, with inputs from NAB, FIA, SECP, FBR, AGP, and other relevant agencies to enhance anti-corruption and governance measures nationwide.
The IMF mission is expected to review progress on these reforms while providing guidance for Pakistan’s ongoing EFF and RSF commitments.