PNN: The International Monetary Fund (IMF) has said that Pakistan remains under an Extended Fund Facility (EFF) arrangement and that an IMF staff team is expected to visit the country starting Feb. 25.
Speaking at a press briefing in Washington on Thursday, IMF Communications Director Julie Kozack said the visit will be for discussions on the Third Review under the EFF and the Second Review under the Resilience and Sustainability Facility (RSF).
Kozack said Pakistan’s policy efforts under the EFF have helped stabilize the economy and rebuild confidence. She said fiscal performance has been strong, noting that Pakistan currently has a primary fiscal surplus of 1.3% of GDP in fiscal year 2025, which is in line with program targets.
Headline inflation has been relatively contained, she added. Kozack also said Pakistan posted its first current account surplus in 14 years in fiscal year 2025.
She further noted that the Governance and Corruption Diagnostic Report was recently published and includes proposals for reforms, including simplifying tax policy design, leveling the playing field for public procurement, and improving asset declaration transparency.
Meanwhile, the International Monetary Fund (IMF) staff team will visit Pakistan from Feb. 25 to begin discussions on key program reviews, the lender said on Thursday, as authorities seek to lock in recent economic stabilization after a prolonged financial crisis.
The talks will cover the third review under Pakistan’s $7 billion Extended Fund Facility (EFF) bailout and the second review under the Resilience and Sustainability Facility (RSF), which supports countries dealing with climate vulnerabilities.
Pakistan has spent the past year implementing tough fiscal and structural reforms including tax increases, subsidy cuts and a tighter monetary policy to stabilize a fragile economy that faced record inflation, dwindling foreign reserves and default fears in 2023.
“We do have a staff team that is expected to visit Pakistan starting February 25th for discussions on the third review under the EFF and the second review under the RSF,” IMF communications director Julie Kozack said at a regular press briefing.
The IMF says the program aims to restore macroeconomic stability, rebuild external buffers and make Pakistan more resilient to climate shocks following devastating floods in recent years.
Kozack said Pakistan’s policy implementation had already produced measurable improvements.