IMF praises Pakistan’s economic reforms ahead of Feb 25 review

The International Monetary Fund (IMF) has praised Pakistan for its recent economic reforms, saying that policy measures under the IMF-supported programme have helped stabilise the economy and rebuild market confidence.

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

Kozack highlighted that Pakistan’s policy efforts have helped stabilise the economy. Fiscal performance has remained strong, with the country posting a primary fiscal surplus of 1.3% of GDP in 2025. Inflation has been relatively contained, and Pakistan recorded its first current account surplus in 14 years during the same period.

Governance and Anti-Corruption Reforms

The IMF recently published a Governance and Corruption Diagnostic Report, outlining reforms to:

• Simplify tax policy

• Make public procurement fairer

• Improve transparency in asset declarations

In response, Pakistan has prepared a 15-point action plan including:

• Identifying the top 10 high-risk federal agencies with corruption risks

• Reducing economic dispute backlogs by assessing court performance and administrative tribunals

• Implementing Alternate Dispute Resolution (ADR) mechanisms

A detailed 240-page plan has been developed to strengthen governance, combat corruption, and improve institutional efficiency.

Anti-Money Laundering Measures

The Anti-Money Laundering Authority (AMLA) will review the AML Act 2010 to remove ambiguities and improve investigative powers. Amendments will be presented to parliament and implemented by June 2027.

National Corruption Risk Assessment

The National Accountability Bureau (NAB) will draft a centralised corruption risk assessment. A task force, led by the AML/CFT Authority and including NAB, FIA, FBR, SECP, and other agencies, will finalise a Corruption Risk Assessment Framework to identify vulnerabilities in government organisations.

The IMF said these reforms and governance improvements are crucial for building confidence, improving transparency, and supporting Pakistan’s long-term economic stability.