IMF Commends Pakistan's Economic Reforms Amid Ongoing Challenges

ISLAMABAD: A senior official from the International Monetary Fund (IMF) praised Pakistan's significant economic reforms on Sunday, highlighting their role in the country's ongoing $7 billion loan program. During a presentation at the Sustainable Development Policy Institute (SDPI), Mahir Binici, the IMF Resident Representative for Pakistan, stated, "Pakistan's performance under the IMF's Extended Fund Facility (EFF) has been strong so far." This evaluation follows the successful completion of the first review by the IMF Executive Board in May 2025, marking a critical milestone in the ongoing partnership.

Binici emphasized the necessity for Pakistan to implement structural reforms to achieve economic stability, enhance investment, and bolster tax equity. He noted, "Structural reforms remain central to Pakistan's long-term economic sustainability, particularly those aimed at improving the business climate and encouraging private-sector-led investment."

The IMF representative acknowledged the early policy measures adopted by Pakistan, which have contributed to restoring macroeconomic stability and rebuilding investor confidence despite persistent external challenges, including geopolitical tensions and trade disruptions.

Furthermore, Binici highlighted Pakistan's initiatives related to climate reform under the IMF's Resilience and Sustainability Facility (RSF), which aims to fortify countries against climate-related vulnerabilities. He pointed out that key reform areas under the RSF include enhancing public investment planning, optimizing the sustainable use of water resources, improving disaster preparedness, and increasing the availability and transparency of climate-related data.

He asserted, "Support through the RSF will not only enhance Pakistan's climate resilience but will also help unlock green investments, fostering a more environmentally conscious economic trajectory."

Addressing an audience comprised of economists and policy experts, Binici projected a strengthening of growth across the Middle East, North Africa (MENA) region, and Pakistan in 2025 and beyond. Nonetheless, he warned that elevated trade tensions, geopolitical fragmentation, and diminishing global cooperation continue to generate significant uncertainty, underscoring the urgent need for prudent policy actions moving forward.

In conclusion, the IMF's positive appraisal of Pakistan's economic reforms comes at a critical juncture, as the country faces both internal and external challenges. The commitment to structural reforms and climate resilience is essential for Pakistan's long-term economic trajectory and its ability to attract foreign investment. The IMF's ongoing support is vital as Pakistan navigates these complexities and strives for sustainable growth in an unpredictable global environment.