Pakistan’s Economic Targets on Track ahead of IMF Review on Feb 25

2026-02-20 - 12:43

ISLAMABAD – Pakistan is gearing up for critical IMF review this February, as the country is earning international applause for its economic performance. Almost all of the Fund’s key targets, known as Quantitative Performance Criteria, are within reach, showing strong fiscal discipline, rising reserves, and effective reforms. International Monetary Fund (IMF) appreciated Islamabad’s reform efforts under its economic program, saying they have stabilized economy and restored public and investor trust. Stronger fiscal discipline and healthier external accounts were highlighted as key achievements. IMF Director of Communications Julie Kozack said Pakistan’s policies under Extended Fund Facility (EFF) have been instrumental in bringing stability. She noted that the South Asian nation achieved primary fiscal surplus of 1.3% of GDP in fiscal year 2025, meeting program targets. Inflation has been largely contained, and notably, Pakistan posted its first current account surplus in 14 years. Kozack stressed recently published Governance and Corruption Diagnostic Report, which includes bold reform proposals such as simplifying tax policies, leveling the playing field in public procurement, and boosting transparency in asset declarations. Pakistan remains under the EFF framework, with an IMF staff team set to visit on February 25 to conduct the third review of the EFF and the second review of the Resilience and Sustainability Facility (RSF). These assessments will evaluate Pakistan’s progress against the criteria set for September and December 2025. $7 billion EFF program aims to address long-standing economic weaknesses and stabilize the balance of payments. Finance Minister Muhammad Aurangzeb reassured the nation that external financing is fully on track, with no shortfall reported. With historic milestones like the current account surplus and strengthened fiscal health, Pakistan appears to be charting a path toward sustained economic recovery, earning international recognition for its reform agenda. Pakistan is on track to meet nearly all seven IMF Quantitative Performance Criteria (QPCs) under its ongoing program, strengthening its position ahead of the upcoming IMF review later this month. Topline Securities reports that only one indicator remains uncertain, having previously fallen short by Rs1 billion. IMF team will visit in late February to review the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) targets for September and December 2025. Key metrics such as Net International Reserves, Net Domestic Assets, foreign currency swaps, and primary surplus are expected to be met or exceeded. Government guarantees, cash transfers, and new tax return targets are also likely to be achieved. However, FBR tax collection fell short by Rs336 billion, with partial recovery possible through the Super Tax verdict. Overall, Pakistan’s performance signals strong fiscal management and economic resilience ahead of the IMF review. IMF praises Pakistan’s economic stability ahead of key reviews in February