IMF Calls Pakistan’s Economic Performance Encouraging, Urges Overcoming Political Barriers

The International Monetary Fund (IMF) on Monday described Pakistan’s economic performance as encouraging, emphasizing the need for the country to overcome political obstacles to achieve durable development.

Mahir Binici, the IMF’s Representative in Pakistan, spoke at the Sustainable Development Policy Institute (SDPI) about the evolving economic conditions in Pakistan, the Middle East, and North Africa. He assured that the IMF will continue supporting Pakistan’s economic reform agenda.

Binici expressed optimism about further progress in Pakistan, North Africa, and the Middle East in 2025 and beyond. However, he cautioned that geopolitical tensions, trade disruptions, and diminishing global cooperation remain significant challenges to recovery efforts.

Highlighting the importance of prompt policy action, Binici said long-term economic development requires immediate steps. He noted Pakistan’s strong performance under the Fund’s Extended Fund Facility (EFF) and called the successful completion of the program’s first review in May 2025 a major milestone.

“These initial policy measures have helped revive economic stability and restored investor confidence despite external challenges,” he added.

The IMF representative emphasized the crucial role of structural reforms in achieving long-term economic stability. He specifically mentioned reforms aimed at creating a fair tax system, fostering a business-friendly environment, and encouraging private sector investment.

Binici also commended Pakistan’s progress in environmental reforms, recognizing it as an important area of development.

Read More: Pakistan’s proposed 2025-26 tax rates for salaried individuals post IMF nod