IMF highlights Pakistan's strong economic reform progress

ISLAMABAD: The International Monetary Fund’s (IMF) Resident Representative for Pakistan, Mahir Binici, stated that Pakistan’s performance under the IMF’s Extended Fund Facility (EFF) has been “strong so far,” highlighting the successful completion of the first review by the IMF Executive Board in May 2025 as a key milestone.

In a comprehensive guest lecture at the Sustainable Development Policy Institute (SDPI), Binici discussed the evolving economic landscape across the Middle East and North Africa (MENA) region and Pakistan. He reaffirmed the Fund’s continued support for Pakistan’s economic and climate reform agenda.

Addressing economists, researchers, and policy experts at SDPI, Binici noted that growth across the MENA region and Pakistan is expected to strengthen in 2025 and beyond.

However, he cautioned that elevated trade tensions, geopolitical fragmentation and weakening global cooperation continued to generate exceptional uncertainty and weigh on the global economic outlook, underlining the urgent need for prudent and forward-looking policy actions, said a press release issued here on Sunday.

Focusing on Pakistan, Binici noted that the country’s performance under the IMF’s Extended Fund Facility (EFF) has been “strong so far,” adding that the successful completion of the first review by the IMF Executive Board in May 2025 was a key milestone.

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

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

He also spotlighted Pakistan’s progress on climate-related reforms under the IMF’s Resilience and Sustainability Facility (RSF). According to Binici, the RSF is designed to help countries like Pakistan bolster resilience to climate-related vulnerabilities and meet international climate commitments.

He mentioned that the key areas of reform under the RSF included enhancing public investment planning, promoting efficient and sustainable use of water resources, improving institutional coordination for disaster preparedness and financing, expanding the availability and transparency of climate-related data.

Binici stressed 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.”

Dr Abid Qaiyum Suleri, Executive Director SDPI welcomed the IMF representative’s outreach, noting the importance of informed economic dialogue and multilateral cooperation in Pakistan’s journey toward sustainable development.

The lecture concluded with an interactive discussion on fiscal and monetary policy frameworks, external buffers, and the role of international institutions in fostering inclusive growth.