IMF welcomes Pakistan’s reform progress, prepares for upcoming reviews

Washington (Web Desk): The International Monetary Fund (IMF) has praised Pakistan’s reform efforts under its IMF-supported programme, noting that these policies have helped stabilise the economy and restore market confidence.

IMF spokesperson Julie Kozack said Pakistan is currently implementing an Extended Fund Facility (EFF) arrangement. An IMF staff team is scheduled to visit the country from February 25 to conduct the third review under the EFF and the second review under the Resilience and Sustainability Facility (RSF).

Kozack highlighted that Pakistan’s policy measures have contributed to macroeconomic stabilisation, maintained strong fiscal performance with a primary fiscal surplus of 1.3% of GDP in FY2025, kept headline inflation relatively contained, and achieved the country’s first current account surplus in 14 years.

The IMF also welcomed the recently published Governance and Corruption Diagnostic Report, which includes recommendations such as simplifying tax policies, improving transparency in asset declarations, and ensuring a level playing field in public procurement.

Ahead of the IMF mission, Pakistan has prepared a 15-point action plan in response to the report, targeting high-risk federal agencies with corruption vulnerabilities and implementing reforms to streamline economic dispute resolution, including performance assessments for courts and judges.

The government has also outlined legislative reviews of the Anti-Money Laundering Act (AMLA) 2010 to remove ambiguities, strengthen investigative powers, and improve prosecution procedures, with amendments expected to be tabled in Parliament by June 2027.

Additionally, Pakistan plans to develop a centralised Corruption Risk Assessment Framework under the National Anti-Corruption Task Force, coordinating efforts of NAB, FIA, AML/CFT Authority, and other anti-corruption agencies to monitor and mitigate institutional vulnerabilities.

Last December, the IMF Executive Board approved a $1.2 billion loan for Pakistan following the second review of its economic reform programme under the EFF.