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IMF Credits Pakistan’s EFF Policies for First Current Account Surplus in 14 Years
The IMF praises Pakistan’s economic policies under the $7bn EFF and $1.1bn RSF, noting strong fiscal performance, first current account surplus in 14 years, and a primary fiscal surplus of 1.3% of GDP. IMF review team to visit Feb 25.
ND
by News Desk
2026-02-20
IMF Credits Pakistan’s EFF Policies for First Current Account Surplus in 14 Years

Pakistan’s policy measures under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) have helped stabilise the economy and rebuild confidence, IMF Communications Director Julie Kozack said on Thursday during a weekly briefing.

Kozack noted that Pakistan’s fiscal performance has been “strong,” with a primary fiscal surplus of 1.3 per cent of gross domestic product (GDP), meeting programme targets. She added that headline inflation remains relatively contained and highlighted that Pakistan recorded its first current account surplus in 14 years in FY25.

Upcoming IMF Mission

An IMF staff team is scheduled to visit Pakistan starting February 25 to conduct the third review under the EFF and the second review under the Resilience and Sustainability Facility (RSF). The mission, led by Iva Petrova, will review the implementation of the $7 billion EFF and $1.1 billion RSF facilities.

During the nearly two-week visit ending March 11, the IMF will also discuss budget proposals for the upcoming fiscal year 2026-27, with a focus on provincial finances and performance-based adjustments.

Governance and Reform Recommendations

Kozack referenced the IMF’s recent Governance and Corruption Diagnostic report, which proposes reforms such as simplifying tax policy design, creating a level playing field in public procurement, and improving transparency in asset declarations.

Fiscal Context and Disbursement

While overall programme performance has met expectations, Pakistan faced a minor revenue shortfall. Authorities anticipate this gap could narrow following a favourable ruling by the Federal Constitutional Court regarding the recently imposed super tax.

Upon successful completion of the IMF review, Pakistan will become eligible for approximately $1 billion (760 million Special Drawing Rights) under the EFF and an additional $200 million under the RSF, expected by the end of April.

The EFF is a medium- to long-term IMF lending programme designed to help countries tackle structural economic weaknesses, address balance-of-payments issues, and implement sustainable fiscal and monetary policies.

With IMF reviews underway and reforms in focus, Pakistan is positioning itself to maintain macroeconomic stability while encouraging growth and investor confidence.
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