ISLAMABAD: The International Monetary Fund (IMF) has praised Pakistan’s economic performance under its Extended Fund Facility (EFF), describing progress so far as “strong” and expressing optimism about the country’s growth prospects in the coming year.
Speaking at the Sustainable Development Policy Institute (SDPI) in Islamabad, IMF Resident Representative Mahir Binici delivered an extensive lecture on the economic outlook for Pakistan and the broader Middle East and North Africa (MENA) region. He reiterated the IMF’s commitment to supporting Pakistan’s economic reforms and climate agenda.
Binici noted that growth across MENA and Pakistan is expected to strengthen in 2025 and beyond. However, he warned that global economic prospects remain clouded by heightened trade tensions, geopolitical uncertainties, and weakening international cooperation. “These factors continue to create exceptional uncertainty, requiring prudent and forward-looking policy actions,” he emphasised.
Commenting on Pakistan’s progress, Binici said the country had performed well under the EFF programme, with the successful completion of the first review by the IMF Executive Board in May marking a significant milestone. “Early policy measures have helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges,” he remarked.
He stressed the need for structural reforms to ensure Pakistan’s long-term economic sustainability, highlighting tax equity, improvements in the business environment, and policies that encourage private sector-led investment as critical areas for progress.
Binici also commended Pakistan’s efforts under the IMF’s Resilience and Sustainability Facility (RSF), which supports countries in tackling climate-related vulnerabilities and meeting international climate commitments. He outlined key reforms under the RSF, including better public investment planning, efficient and sustainable use of water resources, enhanced disaster preparedness and financing, and greater transparency of climate-related data.
“Support through the RSF will not only strengthen Pakistan’s climate resilience but also unlock green investments and put the country on a more climate-conscious growth path,” Binici noted.
Welcoming the IMF representative’s visit, SDPI Executive Director Dr Abid Qaiyum Suleri underscored the importance of informed economic dialogue and international cooperation in Pakistan’s journey towards sustainable development.
The session concluded with an interactive discussion on fiscal and monetary policy frameworks, external financial buffers, and the role of multilateral institutions in fostering inclusive and resilient growth.
Pakistan reached a staff-level agreement with the IMF in March under the $7 billion EFF, aimed at stabilising the economy while advancing structural reforms essential for sustainable development.
