Pakistan gears up for third IMF review

February 04, 2026 (MLN): Government plans are moving forward as Pakistan prepares for a visit from an International Monetary Fund (IMF) delegation later this month for the third review of the country’s economic program.

The IMF team is expected by month-end, with the country’s submitted economic framework reportedly showing no external financing gap, Finance Minister Muhammad Aurangzeb, told the Senate’s Standing Committee on Finance.

Discussions are also underway with the United Arab Emirates regarding the rollover of existing financial facilities as Pakistan manages its external financing requirements.

The government continues to prioritize increasing the tax-to-GDP ratio while sustaining macroeconomic stability and advancing structural reforms under the ongoing IMF program.

Furthermore, recent fiscal measures are being implemented as part of Pakistan’s broader economic strategy rather than in response to IMF pressure, with the country maintaining sufficient financial capacity and not seeking emergency international assistance even after recent floods.

The IMF has consistently emphasized Pakistan’s potential for higher growth if governance reforms are implemented effectively.

Reecently, its Governance and Corruption Diagnostic Report urged the country to adopt a 15-point reform agenda, improve transparency in public procurement, strengthen parliamentary oversight, and close systemic loopholes in anti-corruption institutions.

The Fund projected that these reforms could lift Pakistan’s growth rate to 5–6.5% over the next five years, reduce inefficiencies, and curb entrenched elite capture in policy-making.

Pakistan’s progress under the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) is being closely monitored, with fresh disbursements totaling $1.2bn expected upon approval.

These funds are anticipated to bolster foreign exchange reserves and support the broader objective of sustainable economic recovery.

Prime Minister Sharif’s recent initiatives, combined with structural reforms advocated by the IMF, signal a focused effort to stabilize Pakistan’s economy, enhance industrial competitiveness, and lay the groundwork for export-led growth in the coming years.

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