Washington-Based Lender Confirms Upcoming Assessment
The International Monetary Fund (IMF) has publicly commended Pakistan’s economic reform efforts, stating that policy measures under its supported program have stabilized the economy and begun to restore investor confidence. An IMF staff team is scheduled to visit Pakistan starting February 25 to conduct the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).
Key Economic Indicators Show Improvement
IMF spokesperson Julie Kozack highlighted several positive outcomes from Pakistan’s reform program. The country achieved a primary fiscal surplus of 1.3% of GDP for fiscal year 2025, meeting program targets. Headline inflation has been “relatively contained,” and Pakistan recorded its first current account surplus in 14 years during the same period.
“Pakistan’s policy efforts under the EFF have contributed to macroeconomic stabilisation and a gradual restoration of confidence,” Kozack stated.
Governance Reforms and Anti-Corruption Drive
The IMF also noted the recent publication of a Governance and Corruption Diagnostic Report, which outlines a suite of proposed reforms. Key proposals include:
- Simplifying tax policy design.
- Leveling the playing field in public procurement.
- Improving transparency in asset declarations for public officials.
In preparation for the IMF mission, the Pakistani government has drafted a comprehensive 15-point action plan in response to the governance assessment. The plan includes identifying the top ten high-risk federal agencies vulnerable to corruption and aims to reduce backlogs in economic dispute courts.
Ambitious Legislative and Institutional Overhaul
The government’s detailed 240-page action plan outlines significant institutional changes. A central focus is strengthening anti-money laundering (AML) frameworks. A Joint Working Group will review the Anti-Money Laundering Act (AMLA) 2010 to remove legal ambiguities, particularly regarding predicate offences for prosecution. Proposed amendments are targeted for parliamentary approval and implementation by June 2027.
Furthermore, the National Accountability Bureau (NAB) will lead a national corruption risk assessment. A new National Anti-Corruption Task Force, established under the AML/CFT Authority, will serve as a central coordinating body for all relevant agencies to finalize a unified Corruption Risk Assessment Framework.
The upcoming IMF review mission will be a critical test for Pakistan’s continued access to international financing, following a $1.2 billion loan disbursement approved by the IMF Executive Board in December last year.
