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Policy efforts taken by Pakistan under EFF helped ‘stabilise economy, rebuild confidence’: IMF

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Policy efforts undertaken by Pakistan under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) “helped stabilise the economy and rebuild confidence,” the lending agency’s spokesperson said on Thursday.

IMF Communications Director Julie Kozack made the statement during a weekly press briefing.

In response to a question regarding Pakistan’s progress in meeting terms set by the Fund, Kozack said, “Pakistan’s policy efforts under the EFF have helped stabilise the economy and rebuild confidence.”

She further said that fiscal performance had been “strong”. Kozack said that Pakistan currently had a primary fiscal surplus of 1.3 per cent of the gross domestic product (GDP), which was “in line with programme targets”.

“Headline inflation has been relatively contained. And Pakistan posted its first current account surplus in 14 years in FY25,” Kozack added.

She also said that an IMF staff team was expected to visit Pakistan starting February 25 for discussions on the third review under the EFF and the second review under the Resilience and Sustainability Facility (RSF).

Kozack also highlighted the IMF’s recent Governance and Corruption Diagnostic report, which she said “includes proposals for reforms, including simplifying tax policy design, levelling the playing field for public procurement, and improving the asset declaration transparency”.

It is worth mentioning that an IMF mission led by Iva Petrova is due to visit Pakistan later this month to review the implementation of the $7 billion EFF and the $1.1bn RSF facilities.

During the almost two-week visit ending March 11, the engagements would be of greater significance as both sides would also discuss budget proposals based on performance this year and set broad contours of the upcoming budget (for the fiscal year 2026-27), particularly those relating to provincial finances.

The programme’s performance as of end-Dece­mber 2025 — the period for review — has mostly been up to the mark, alb­eit with a revenue shortfall, which authorities bel­i­eve could be reduced following a recent super tax ruling by the Federal Cons­t­ituti­onal Court that went in the government’s favour.

Upon the successful completion of the review, Pakistan will be eligible for the disbursement of about $1bn (760 million Special Drawing Rights) under the EFF and another $200m under the RSF by the end of April.

The EFF is a longer-term IMF loan programme designed to help countries address deep-seated economic weaknesses and medium-term balance-of-payments problems.



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OGDCL makes discovery in Sindh

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ISLAMABAD: The state-owned Oil and Gas Development Company Ltd (OGDCL) on Thursday announced a gas and condensate discovery at its Dars West-3 well located in Tando Allah Yar district of Sindh.

“During testing, Dars West-3 flowed at a rate of 9.70 million standard cubic feet per day of gas along with 580 barrels per day of condensate at a choke size of 36/64 inches,” the company said in a statement.

Pipeline laying is currently underway to connect the well to the KPD-TAY processing plant. Upon completion, the produced gas will be processed and injected into the SSGCL network, contributing to the national energy supply.

Published in Dawn, February 20th, 2026



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Govt to honour net-metering requests filed before Feb 8 under old rules

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ISLAMABAD: To salvage government credibility, Power Minister Awais Leghari on Thursday decided to honour all applicants of net-metering solar connections till the change of regulations on Feb 8 and directed electricity distribution companies (Discos), including K-Electric, for its implementation.

At a meeting of the Power Division’s attached entities, the minister was informed that 5,165 consumers had applied for net-metered connections by the cut-off date of Feb 8 — the day the National Electric Power Regulatory Authority (Nepra) notified the Prosumers Regulations 2026, replacing the net-metering framework with net billing and negatively affecting rooftop solar economics for households and industry.

All these applications entailed a net-metering capacity addition of about 250.8 megawatts.

“All net metering applications minister on commerce and industry. He was later sworn in as the provincial minister for agriculture and cooperatives.

Meanwhile, Sardar Bhootani continued his legal fight and filed a petition against the ECP’s decision in the FCC. The court, after prolonged hearings, accepted the petition of Sardar Bhootani and reserved its verdict.

A day before the FCC was set to announce its verdict, Mr Zehri tendered his resignation. The next day, the FCC suspended Mr Zehri’s notification as the retu­r­ned candidate from the Bal­o­c­h­i­s­tan Assembly PB-21 constituency.

Later, the ECP issued a notification de-seating him as an MPA.

As a minister, he had differences with CM Bugti and, after resigning, accused the chief minister of interfering in his constituency.

Published in Dawn, February 20th, 2026



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Food exports hit steep decline as imports surge

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ISLAMABAD: Pakis­tan’s food import bill sur­ged to $5.502 billion during the first seven months of the current fiscal year, marking a 19.27 per cent increase from $4.613bn in the corresponding period last year, largely driven by higher arrivals of sugar and edible oil.

In contrast, exports of raw food items plunged 35.21pc to $2.988bn in 7MFY26, compared with $4.613bn a year ago. Export volumes declined across nearly all major food categories, except meat. The steepest decline was recorded in rice exports, including both basmati and non-basmati varieties.

The increase in food imports underscores the country’s growing dependence on foreign supplies amid persistent domestic production and supply constraints. The surge was largely fuelled by higher purchases of sugar, edible oil and tea to meet local demand.

According to data released by the Pakistan Bureau of Statistics, palm oil accounted for the largest share among imported food items, followed by pulses, tea, soyabean oil, and sugar.

Pakistan imported 308,741 tonnes of sugar during the July-January period, representing an unprecedented year-on-year increase of 13,494.93pc, up from 2,271 tonnes in the same period last year.

In terms of value, sugar imports rose sharply to $174.614m, up from $2.181m in 7MFY25, a surge of 7,906.15pc, accor­ding to official trade data.

The dramatic rise comes in response to the government’s decision to allow sugar imports in a bid to address domestic shortages and stabilise market prices. Retail sugar prices have been fluctuating between Rs160 and Rs190 per kg in various cities, prompting authorities to step in and ease supply constraints through imports.

The value of palm oil imports surged 24.69pc to $2.350bn in 7MFY26, up from $1.885bn a year ago. In terms of quantity, im­port of palm oil rose 15.63pc to 2.182m tonnes from 1.887m tonnes in the corresponding period last year. This growth indicates higher consumption of edible oil and ghee in Pakistan.

However, the arrival of pulses fell 21.89pc to $492.095m from $630.019m in 7MFY25. Similarly, soyabean oil imports plunged 42.27pc to $94.991m from $164.550m.

The import bill for all other food items rose 34.37pc to $1.672bn.

Published in Dawn, February 20th, 2026



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