The IMF praises Pakistan economic reforms as the country shows clear signs of stabilisation under its ongoing reform programme. According to officials from the International Monetary Fund, Pakistan’s recent policy measures under the Extended Fund Facility (EFF) have helped restore macroeconomic stability, rebuild investor confidence, and strengthen fiscal discipline. This recognition comes at a crucial time when the country has been navigating inflationary pressures, external financing challenges, and structural governance weaknesses.
Economic Stabilisation Gains
One of the most significant outcomes highlighted by the IMF is Pakistan’s improved fiscal performance. The country posted a primary fiscal surplus of 1.3% of GDP in 2025 — a major achievement considering previous years of persistent deficits. A primary surplus means the government’s revenues exceeded its non-interest expenditures, signaling stronger financial management and improved revenue collection.
Inflation, which had surged in recent years, has also been relatively contained due to tighter monetary policies and fiscal adjustments. Additionally, Pakistan recorded its first current account surplus in 14 years, reflecting improved external balance. This suggests that export performance, remittances, and import management have contributed positively to the country’s foreign exchange position.
These indicators collectively explain why the IMF praises Pakistan economic reforms as a turning point in restoring macroeconomic stability.
Ongoing IMF Programme Reviews
Pakistan is currently implementing an Extended Fund Facility (EFF) arrangement, designed to support countries facing serious medium-term balance of payments problems. An IMF team is scheduled to visit Pakistan to conduct the third review under the EFF and the second review under the Resilience and Sustainability Facility (RSF).
These reviews are essential because they assess whether Pakistan is meeting agreed policy targets. Successful completion of these reviews ensures continued financial support and sends a strong signal to global markets that reforms remain on track.
The fact that the IMF praises Pakistan economic reforms before these critical reviews reflects growing confidence in the country’s policy direction.
Governance and Anti-Corruption Reforms
Economic stabilisation alone is not enough for sustainable growth. Structural reforms in governance and anti-corruption mechanisms are equally important. The IMF recently published a Governance and Corruption Diagnostic Report outlining key reform areas, including simplifying tax policy, improving public procurement processes, and enhancing transparency in asset declarations.
In response, Pakistan has developed a comprehensive 15-point action plan. This includes identifying the top 10 high-risk federal agencies vulnerable to corruption and reducing backlogs in economic dispute cases through court performance assessments and administrative tribunals.
The government also plans to implement Alternate Dispute Resolution (ADR) mechanisms to resolve commercial disputes more efficiently. A detailed 240-page governance reform plan has been prepared to strengthen institutions and improve public sector efficiency.
Such structural measures further explain why the IMF praises Pakistan economic reforms, as they address deep-rooted systemic weaknesses.
Strengthening Anti-Money Laundering Measures
Another critical reform area is anti-money laundering (AML). The Anti-Money Laundering Authority (AMLA) will review the AML Act 2010 to remove ambiguities and strengthen investigative powers. Proposed amendments are expected to be presented to parliament and implemented by June 2027.
Improving AML regulations is essential not only for domestic accountability but also for maintaining international credibility. Strong AML frameworks help prevent illicit financial flows, protect financial institutions, and align Pakistan with global standards.
These improvements contribute to the broader reform narrative under which the IMF praises Pakistan economic reforms as forward-looking and comprehensive.
National Corruption Risk Assessment Framework
The National Accountability Bureau (NAB) is also preparing a centralised corruption risk assessment. A task force led by the AML/CFT Authority, including representatives from NAB, FIA, FBR, SECP, and other agencies, will finalise a Corruption Risk Assessment Framework.
This framework aims to identify vulnerabilities within government institutions and recommend targeted solutions. By taking a risk-based approach, authorities can prioritise areas most susceptible to corruption, thereby increasing efficiency and accountability.
Institutional coordination among multiple agencies marks a shift toward a more systematic and data-driven anti-corruption strategy.
Long-Term Impact on Economic Stability
The recognition that the IMF praises Pakistan economic reforms is more than symbolic. It carries real economic implications. Positive IMF assessments often encourage foreign investors, multilateral lenders, and credit rating agencies to view Pakistan as a more stable and reform-oriented economy.
However, challenges remain. Sustaining reforms requires political will, policy consistency, and public support. Fiscal discipline must continue, inflation must remain controlled, and governance reforms must move from planning to full implementation.
If these efforts stay on track, Pakistan could transition from short-term stabilisation to long-term economic resilience. Stronger institutions, improved transparency, and enhanced financial discipline can lay the foundation for inclusive and sustainable growth.
The fact that the IMF praises Pakistan economic reforms highlights meaningful progress in stabilising the economy and strengthening governance structures. With improved fiscal performance, contained inflation, a current account surplus, and ambitious anti-corruption initiatives, Pakistan appears to be moving in a positive direction.
While much work remains, the current reform trajectory suggests that with continued commitment and institutional strengthening, Pakistan can build lasting economic stability and renewed market confidence in the years ahead.
