Pakistan’s reform progress under EFF getting strong: IMF
ISLAMABAD – International Monetary Fund (IMF) Resident Representative for Pakistan Mahir Binici has said that the country’s performance under the Extended Fund Facility (EFF) has been strong so far and expressed the hope that its economic growth would strengthen this year.
“Early policy measures taken by the government of Pakistan have helped restore macroeconomic stability and rebuild investors’ confidence, despite persistent external challenges,” Binici remarked this while addressing economists, researchers, and policy experts at SDPI here on Sunday.
The successful completion of the first review by the IMF Executive Board in May 2025 was a key milestone, Binici remarked.
He emphasized 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, expanding the availability and transparency of climate-related data.
Binici stressed that “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.”
On the occasion, he also anticipated strengthening growth in 2025 and beyond across the Middle East, North Africa (MENA) region.
The IMF resident representative in his comprehensive guest lecture shed light on the evolving economic landscape across the MENA region and Pakistan, and reaffirmed the Fund’s continued support for Pakistan’s economic and climate reform agenda.
Binici stated that growth across the Middle East, North Africa (MENA) region, and Pakistan is expected to strengthen in 2025 and beyond. However, he cautioned that “elevated trade tensions, geopolitical fragmentation, and weakening global cooperation continue to generate exceptional uncertainty and weigh on the global economic outlook,” underlining the urgent need for prudent and forward-looking policy actions.
Pakis¬tan had secured a three-year aid package deal in July 2024. The programme, approved by the IMF two months later, is set to allow the country to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth”.
Dr Abid Qaiyum Suleri, Executive Director SDPI, welcomed the IMF representative’s outreach, noting the importance of informed economic dialogue and multilateral cooperation in Pakistan’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.
