Pakistan has posted “strong” progress in its economic reforms under the $7 billion International Monetary Fund (IMF) Extended Fund Facility “so far,” says an official of the global lender, while stressing the need to sustain the momentum.
Delivering a guest lecture at the Sustainable Development Policy Institute (SDPI) in Islamabad, Resident Representative in Pakistan Mahir Binici commended the government’s implementation of reforms under the bailout. Describing the progress as “strong so far,” particularly in the wake of Pakistan’s successful first review under the current program, he said the policy measures had helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges.
He noted the ongoing EFF had been instrumental in restoring balance to key fiscal and external indicators. However, he stressed, sustained momentum on structural reforms remains critical, particularly in areas such as tax equity, improving the business environment, and fostering private-sector-led investment.
Reaffirming the IMF’s continued engagement with Islamabad under multiple reform programs, he noted that economic growth across the Middle East and North Africa region and Pakistan was projected to strengthen in 2025 and beyond, as countries stabilize after recent global shocks. “Elevated trade tensions, geopolitical fragmentation, and weakening global cooperation continue to generate exceptional uncertainty and weigh on the global economic outlook,” he warned of potential risks.
These conditions, he emphasized, required prudent and forward-looking policymaking, particularly in countries like Pakistan that are undergoing structural transitions.
Outlining Pakistan’s growing engagement with the IMF’s Resilience and Sustainability Facility, aimed at bolstering climate resilience, Binici said it sought to enhance public investment planning for climate adaptation projects; promote sustainable and efficient use of water resources amid growing environmental pressures; strengthen institutional coordination for disaster preparedness and financing mechanisms; and improve climate data availability and transparency to support evidence-based policymaking.
“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.
SDPI Executive Director Abid Qaiyum Suleri welcomed the IMF’s engagement, noting continued dialogue between multilateral institutions and national stakeholders is a necessity. “Informed economic discourse and policy coordination are vital for Pakistan’s journey toward sustainable development,” he said, emphasizing the importance of inclusive growth and resilience amidst mounting socio-economic challenges.
The lecture included an interactive discussion between Binici and participants, including questions about the IMF’s role in enabling inclusive growth, as well as how Pakistan could ensure macroeconomic reforms yield tangible improvements in employment, poverty reduction, and climate adaptation.
Binici reiterated the IMF’s commitment to supporting Pakistan not just through financial resources, but also through technical assistance, policy advice, and capacity building.