IMF Pakistan Economic Review 2026: Milestone Turnaround Acknowledged
The IMF Pakistan economic review 2026 is set to begin on a high note as the International Monetary Fund (IMF) officially acknowledged a significant turnaround in the country’s financial landscape. Speaking from Washington, IMF Communications Director Julie Kozack credited the Extended Fund Facility (EFF) for stabilizing the national economy. With inflation finally showing signs of cooling and external buffers growing, the upcoming review is expected to pave the way for a crucial $1.2 billion disbursement.
Key Economic Indicators Hit Targets
During a recent briefing, the IMF highlighted that Pakistan’s fiscal performance for the year 2025–26 has been “strong.” For the first time in 14 years, the country recorded a current account surplus, a major indicator of external sector stability.
Additionally, Pakistan has maintained a primary fiscal surplus of 1.3% of GDP, meeting the tough benchmarks set under the current program. These results are a direct outcome of the structural reforms and policy adjustments implemented over the last several months. While revenue shortfalls were a concern in late 2025, recent favorable rulings by the Federal Constitutional Court regarding “super tax” are expected to bridge the gap.
[Image showing a comparison of Pakistan’s current account balance from 2011 to 2026]
Timeline for the Upcoming Review
The IMF Pakistan economic review 2026 will follow a structured schedule starting next week:
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February 25: IMF Mission Chief Iva Petrova arrives in Karachi for talks with the State Bank of Pakistan (SBP).
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March 2: Formal negotiations begin in Islamabad with federal and provincial authorities.
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March 11: Conclusion of the review process.
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Late April: Expected disbursement of $1 billion (EFF) and $200 million (RSF) upon successful approval.
Focus on Transparency and Corruption
Beyond the numbers, the IMF is placing a heavy emphasis on structural governance. The recently published “Governance and Corruption Diagnostic Report” for Pakistan will be a central part of the upcoming talks. The Fund has urged the government to simplify tax policies and improve the transparency of asset declarations for public officials.
One of the top priorities remains “leveling the playing field” in public procurement. By making the tax system more predictable and transparent, the IMF believes Pakistan can foster long-term investor confidence. The implementation of the National Fiscal Pact, which coordinates financial responsibilities between the federal and provincial governments, will also be under the microscope during the March sessions.
As the nation enters this critical review phase during the month of Ramadan, the successful completion of these talks is vital. It will not only unlock immediate funding but also signal to international markets that Pakistan’s economic recovery is sustainable and on track.
