IMF Praises Pakistan’s Economic Stability Amid Middle East War

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Islamabad, Pakistan – Web Desk: The International Monetary Fund has praised Pakistan’s economic reforms and policy implementation, stating that the country managed to maintain economic stability despite ongoing conflict in the Middle East.

According to an IMF statement, the Executive Board approved Pakistan’s latest economic reviews under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

The IMF confirmed that Pakistan will immediately receive the next loan tranche of $1.1 billion under the ongoing bailout program. In addition, the country will also receive $220 million in climate financing support.

The statement said Pakistan has so far received a total of $4.8 billion under both IMF programs.

The IMF noted that Pakistan’s GDP growth had improved, inflation remained under control, and the current account stayed balanced despite global economic uncertainty and regional geopolitical tensions.

The financial institution projected Pakistan’s primary surplus for fiscal year 2026 to remain at 1.6% of GDP, while foreign exchange reserves reportedly reached $16 billion by December 2025.

The IMF also emphasized the need for Pakistan to expand its tax net and improve tax collection mechanisms as part of ongoing fiscal reforms.

Economists say the IMF approval is likely to boost investor confidence, support the Pakistani rupee, and strengthen the country’s external financing position amid global market volatility.

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