ISLAMABAD: The International Monetary Fund (IMF) Friday welcomed the reform progress by Pakistan, saying its policy efforts under the IMF-supported programme have helped stabilise the economy and rebuild market confidence.
According to IMF spokesperson and Director of Communications Julie Kozack, Pakistan is currently implementing an Extended Fund Facility (EFF) arrangement and an IMF staff team is expected to visit the country starting February 25 for discussions on the third review under the EFF and the second review under the Resilience and Sustainability Facility (RSF).
Kozack said Pakistan’s policy efforts under the EFF have contributed to macroeconomic stabilisation and a gradual restoration of confidence. She added that fiscal performance remained strong, with Pakistan posting a primary fiscal surplus of 1.3pc of gross domestic product in fiscal year 2025, in line with programme targets.
Headline inflation, she also said, has remained relatively contained, while Pakistan recorded its first current account surplus in 14 years during the fiscal year 2025.
The official of the Washington-based lender further said that governance and corruption diagnostic report recently published outlined a range of reform proposals, including simplifying tax policy design, levelling playing field in public procurement and improving transparency in asset declarations.
Last year in December, the IMF Executive Board approved a $1.2 billion loan for Pakistan after completing the second review of the country’s economic reform programme under EFF.
The Joint Working Group (JWG) will also review AMLA, 2010 to identify other amendments, e.g. in the areas of definitional clarity, clarification of processes and procedure, and investigative powers, etc., needed to strengthen ML investigations and prosecutions under AMLA, 2010. The amendments in AMLA 2010 will be placed before parliament and subsequently notified and disseminated for implementation by June 2027.
Separately, PM Shehbaz Sharif met US Secretary of State Marco Rubio on the sidelines of the Board of Peace leaders meeting in Washington. He was accompanied by Deputy Prime Minister/Foreign Minister Senator Ishaq Dar.
The PM congratulated President Donald Trump and Secretary Rubio on the successful inaugural meeting of the Board of Peace and reaffirmed that Pakistan was ready to work with the Board of Peace for implementation of the Gaza Peace Plan.
Both sides underscored the importance of Pakistan-US strategic relations and expressed satisfaction over the momentum and positive trajectory of the partnership under the leadership of President Trump. Both sides agreed to enhance bilateral trade and economic activities and mutual cooperation in countering terrorism.
The PM stressed the importance of continued high-level engagement between Pakistan and the US to advance common goals in a rapidly evolving global environment.
On the other hand, the US thanked Pakistan for supporting President Donald Trump’s Gaza peace plan and for joining the Board of Peace.
In a post on X, US State Secretary Marco Rubio shared an image with Prime Minister Shehbaz Sharif and Deputy Prime Minister/Foreign Minister Ishaq Dar.
Rubio mentioned in the post that he met PM Shehbaz to appreciate “Pakistan’s ongoing support of@POTUS’s Peace Plan for Gaza and for joining the Board of Peace.”
“In our meeting, we discussed the importance of our strategic relationship on critical minerals development and counterterrorism,” the secretary of state added.
Responding to Rubio’s tweet, DPM Dar thanked the US secretary of state for what he described as productive discussions on key areas of mutual interest. In a post on X, Dar said Pakistan values its longstanding relationship with the United States and appreciates the meaningful talks held on advancing peace, enhancing cooperation in counterterrorism efforts, and expanding bilateral economic and trade ties.
He added that Islamabad looks forward to further strengthening its strategic partnership with Washington across all areas of shared interest.
Meanwhile, United States International Development Finance Corporation (DFC) Chief Executive Officer (CEO) Benjamin Black called on Prime Minister Shehbaz Sharif in Washington D.C. on Friday. He was accompanied by DFC’s Head of Investments Conor Coleman and the senior leadership of the agency.
The PM appreciated the expanding economic partnership between Pakistan and the US and recognised DFC’s crucial role in catalysing joint ventures between private enterprises of the two countries essential to job creation and productivity enhancement.
Highlighting Pakistan s fast improving macroeconomic fundamentals government’s commitment to deepening structural reforms and attractive investment climate the PM invited DFC to enhance its financing for projects in the energy mines and minerals agriculture and IT sectors. He appreciated DFC’s portfolio of over one billion dollar and pointed to the synergies between economic priorities of both countries that presented mutually rewarding opportunities for enhanced B2B engagement. The PM invited DFC to participate in the upcoming Minerals Conference in Islamabad in April. Benjamin Black briefed the PM on the agency’s strategic initiatives priorities and project pipeline in Pakistan and evinced interest in enhancing DFC’s footprint in Pakistan. He highlighted that DFC is firmly poised including in view of its recent reauthorisation to support economic development in partner countries.
The PM invited Benjamin Black to visit Pakistan at his earliest convenience to explore mutually beneficial investment opportunities in Pakistan in various sectors of shared interest.
