IMF praises Pakistan for strong performance

ISLAMABAD: The IMF Resident Representative for Pakistan, Mahir Binici, says Pakistan’s performance under the Extended Fund Facility (EFF) has been “strong so far” and expresses the hope that its economic growth will strengthen this year.

Binici delivered a comprehensive guest lecture at the Sustainable Development Policy Institute (SDPI) where he shed light on the evolving economic landscape across the Mena region and Pakistan.

He reaffirmed the International Monetary Fund’s continued support for Pakistan’s economic and climate reform agenda.

Addressing economists, researchers and policy experts, Binici said the growth across the Middle East, North Africa (MENA) region and Pakistan was 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.

Focusing on Pakistan, Binici said the country’s performance under the EFF had 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 emphasised 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, and expanding the availability and transparency of climate-related data.

Binici stressed: “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.”

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

Pakistan and the IMF had reached a staff-level agreement in March under the $7 billion EFF, aimed at ensuring economic stability and facilitating structural change.