The IMF has acknowledged that Pakistan's economic activity has stabilized and inflation has begun to gradually decline on the back of strong policy adjustment.In its country report on Pakistan, the international lender said that external pressures have eased somewhat since June last year and the State Bank of Pakistan has taken advantage of renewed inflows to begin rebuilding foreign exchange reserves.The IMF report further states that Pakistan's fiscal performance has also improved with the government achieving a primary surplus in the first quarter of this fiscal year.Welcoming this progress, the IMF warned that the outlook is still challenging.Source: Radio Pakistan