ISLAMABAD: The International Monetary Fund (IMF) has commended Pakistan’s strong performance under its $7 billion Extended Fund Facility (EFF), describing the country’s economic reforms as a step in the right direction to ensure long-term stability and sustainable growth.
During a guest lecture hosted by the Sustainable Development Policy Institute (SDPI) in Islamabad, IMF’s Resident Representative for Pakistan, Mahir Binici, lauded the progress made under the three-year aid package signed in July 2024. The agreement, approved by the IMF Executive Board two months later, was designed to help Pakistan stabilise its economy and lay the groundwork for inclusive and resilient growth.
Binici pointed to the successful completion of the programme’s first review in May — including alignment on the federal budget framework — as a major milestone.
He noted that early policy steps had helped restore macroeconomic stability and rebuild investor confidence, despite facing tough global and regional challenges.
The IMF official emphasized the need to continue with structural reforms, particularly those related to tax fairness, improving the investment climate, and encouraging private-sector participation in economic activity.
Binici also spoke about the $1.3 billion Resilience and Sustainability Facility (RSF) agreement Pakistan signed with the IMF in March 2025 to strengthen climate resilience. He highlighted that this facility aims to support countries like Pakistan in dealing with climate-related vulnerabilities while meeting global environmental commitments.
According to the SDPI press release, key focus areas under the RSF include smarter public investment planning, better water resource management, institutional coordination for disaster response, and enhanced climate data collection and transparency.
Binici said this support would not only boost Pakistan’s preparedness for climate disasters but also attract green investment and guide the country toward a more climate-conscious economic path.
Touching on broader regional trends, Binici remarked that economic growth in Pakistan and across the Middle East and North Africa (MENA) region is expected to pick up in 2025 and beyond. However, he also cautioned that global uncertainties — such as trade tensions and geopolitical fragmentation — still pose serious risks to recovery and growth.
SDPI Executive Director Dr. Abid Qaiyum Suleri welcomed the IMF official’s visit, underlining the importance of open policy dialogue and international cooperation in Pakistan’s journey toward sustainable economic development.
The event wrapped up with an interactive session focusing on fiscal and monetary policy, external financial buffers, and the critical role of global institutions in promoting inclusive growth.
