Pak's economic reforms strong so far: IMF representative

Pakistan’s economic reforms under the IMF’s USD 7 billion loan have been “strong so far”, a representative of the international money lender said on Sunday.

Pakistan had secured a three-year aid package deal in July 2024.

The International Monetary Fund’s (IMF) Resident Representative for Pakistan Mahir Binici said the country’s performance under the three-year Extended Fund Facility (EFF) had been “strong so far” and termed its successful first review by the IMF Executive Board in May as a key milestone.

The EFF aims to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth”, he said.

So far, two instalments of the IMF loan have been issued to Pakistan which is vigorously following the guidelines agreed with the lender.

Binici delivered a lecture in Islamabad as part of a series organised by Sustainable Development Policy Institute (SDPI), a leading think tank in Islamabad.

“Early policy measures have helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges,” Binici said.

He said that structural reforms remained central to Pakistan’s long-term economic sustainability, particularly reforms that strengthen tax equity, improve the business climate and encourage private-sector-led investment.

Binici hailed the IMF’s continued support for the country’s economic and climate reform agenda. The Resilience and Sustainability Facility (RSF) approved in March was designed to help countries like Pakistan bolster resilience to climate-related vulnerabilities and meet international climate commitments, he added.

The IMF official mentioned that the key areas of reform under the RSF, which is a USD 1.3 billion arrangement, included enhancing public investment planning, promoting efficient and sustainable use of water resources, improving institutional coordination for disaster preparedness and financing, along with expanding the availability and transparency of climate-related data.

Binici said that “support through the RSF will not only strengthen Pakistan’s climate resilience but also help unlock green investments and foster a more climate-conscious economic trajectory”.

The IMF official also focused on the evolving economic landscape across West Asia and North Africa (MENA) region and Pakistan, stating that growth across the MENA region, as well as in Pakistan, was expected to strengthen in 2025 and beyond.

The MENA region, or Middle East and North Africa, is a geographical area encompassing West Asia and North Africa.

However, he cautioned that “elevated trade tensions, geopolitical fragmentation and weakening global cooperation continue to generate exceptional uncertainty and weigh on the global economic outlook”.