The International Monetary Fund (IMF) has praised Pakistan for making “strong” progress in its economic reforms under the ongoing $7 billion Extended Fund Facility (EFF). IMF’s Resident Representative for Pakistan, Mahir Binici, shared these remarks during a guest lecture at the Sustainable Development Policy Institute (SDPI) in Islamabad on Sunday.
Binici noted that early policy steps taken by Pakistan had helped restore macroeconomic stability and boost investor confidence, despite ongoing external economic challenges. He called the IMF Executive Board’s successful first review of Pakistan’s performance in May a major milestone, which included approval of the federal budget plan.
He stressed that structural reforms remain key to ensuring long-term economic stability. In particular, reforms that improve tax fairness, strengthen the business environment, and support private-sector investment are critical to building a stronger economy. Binici also reaffirmed the IMF’s commitment to supporting Pakistan’s reform and climate goals.
In addition to economic reforms, Binici highlighted Pakistan’s participation in the $1.3 billion Resilience and Sustainability Facility (RSF) secured in March. This programme is aimed at helping Pakistan adapt to climate challenges by improving disaster planning, efficient water use, and transparency in climate-related data.
The IMF representative added that support under the RSF would also attract green investment and promote a more climate-friendly economy. He emphasized that smart climate policies are now central to achieving both economic and environmental goals for the country.
Binici concluded by discussing the broader economic outlook across Pakistan and the Middle East and North Africa (MENA) region. He said growth is expected to rise in 2025, but warned that trade tensions and global instability continue to pose serious risks, calling for careful and forward-looking policymaking.