The International Monetary Fund (IMF) has lauded Pakistan’s economic stabilisation efforts and termed the progress under its climate reform agenda as commendable, urging the country to maintain prudent and forward-looking policies to ensure long-term sustainability.
Addressing a seminar organised by the Sustainable Development Policy Institute (SDPI) in Islamabad, IMF Resident Representative for Pakistan Mahir Binici said the country’s performance under the Extended Fund Facility (EFF) has been “strong so far”. He described the successful completion of the first review by the IMF Executive Board in May as a “key milestone” in restoring macroeconomic stability.
“Early policy measures have helped rebuild investor confidence, despite persistent external challenges,” said Mr Binici, adding that Pakistan’s economic growth is expected to strengthen in the coming year.
He cautioned, however, that rising trade tensions, geopolitical fragmentation and declining global cooperation were adding to global uncertainty. “There is an urgent need for farsighted and wise policy measures,” he warned.
Binici stressed the importance of structural reforms to ensure Pakistan’s long-term economic resilience. These reforms, he said, should focus on enhancing tax equity, improving the business environment, and encouraging private sector-led investment.
In addition to macroeconomic progress, the IMF representative also acknowledged Pakistan’s efforts on environmental reforms under the Resilience and Sustainability Facility (RSF).
“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,” he said.
The RSF, Binici explained, is designed to help vulnerable countries like Pakistan address climate-related risks and meet international climate commitments. Key areas of reform under the facility include better planning of public investment, sustainable water use, enhanced disaster preparedness, and improved transparency in climate-related data.
Highlighting regional trends, Mr Binici noted that growth across the Middle East, North Africa (MENA) region and Pakistan is projected to improve in 2025 and beyond, although ongoing global uncertainties remain a concern.
The event concluded with a panel discussion featuring economists, researchers, and policy experts. Topics included fiscal and monetary frameworks, external buffers, and the role of multilateral institutions in supporting inclusive and sustainable growth.
SDPI Executive Director Dr Abid Qaiyum Suleri welcomed the IMF representative’s participation, calling it a valuable contribution to economic dialogue and policy formulation in Pakistan.
Pakistan and the IMF had reached a staff-level agreement in March under the $7 billion EFF, aimed at stabilising the economy and initiating structural reforms critical for sustainable development.
