The International Monetary Fund (IMF) has expressed satisfaction with Pakistan’s economic progress, as its Resident Representative Mahir Binici described the country’s performance under the Extended Fund Facility (EFF) as “strong so far”, Pakistan Television reported on Sunday.
Speaking during a guest lecture at the Sustainable Development Policy Institute (SDPI), Binici cited the successful completion of the first EFF review by the IMF Executive Board in May 2025 as a key milestone.
“Early policy measures have helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges,” he said.
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Binici emphasised the importance of sustained structural reforms for Pakistan’s long-term economic sustainability, especially in strengthening tax equity, improving the business environment, and encouraging private-sector-led investment.
He noted that growth across the region is projected to strengthen in 2025 and beyond, but warned that geopolitical tensions, trade disruptions, and declining global cooperation continue to weigh on recovery efforts.
Turning to climate resilience, Binici highlighted Pakistan’s progress on climate-related reforms under the Resilience and Sustainability Facility (RSF), a programme designed to support countries in addressing climate vulnerabilities and meeting global environmental goals.
He outlined key RSF reform priorities for Pakistan, including improved public investment planning, sustainable water resource management, enhanced disaster preparedness and financing, and greater availability and transparency of climate-related data.
“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,” Binici remarked.
Dr Abid Qaiyum Suleri, Executive Director of SDPI, welcomed the IMF’s engagement, underscoring the value of informed dialogue and multilateral cooperation in advancing Pakistan’s sustainable development agenda.
The session concluded with an interactive discussion on fiscal and monetary policy frameworks, external buffers, and the evolving role of global institutions in promoting inclusive economic growth.
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About 3 months ago, the IMF team had reached a staff-level agreement with the Pakistani authorities on the first review of the 37-month Extended Arrangement under the EFF, and on a new 28-month arrangement under the IMF’s Resilience and Sustainability Facility (RSF) with total access over the 28 months of around $1.3 billion.
Pakistan would continue fiscal consolidation to reduce public debt while creating space for social and development spending and reducing crowding out of private investment. Pakistan will also refrain from increasing current spending beyond that budgeted, indicating that no supplementary grants can be issued.
The IMF’s new climate facility is meant to scale up climate reform efforts to reduce vulnerabilities to natural disaster risks and to build climate resilience. In return for the loan, Pakistan has committed to strengthen public investment processes across all levels of government to prioritize projects that enhance disaster resilience, said Porter.
The government will also improve the efficiency of scarce water resource usage, including through better pricing mechanisms, he added.
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It will enhance intergovernmental coordination on disaster financing; improve information architecture and disclosure of financial and corporate climate-related risks; and promote green mobility to mitigate significant pollution and adverse health impacts, said the IMF.