IMF chief praises Pakistan’s economic reform progress

International Monetary Fund Managing Director Kristalina Georgieva has commended Pakistan’s economic reforms under Prime Minister Shehbaz Sharif, noting that the government has shown determination in implementing difficult measures under IMF-supported programs.

Speaking on the sidelines of the World Economic Forum in Davos, Georgieva praised Sharif’s leadership and commitment to economic stability, saying Pakistan is beginning to see positive results from fiscal discipline and reform efforts.

“When Prime Minister Shehbaz Sharif decides to do something, he follows through and completes it,” Georgieva said, according to official statements released by the Pakistani government.

She added that she has met the prime minister multiple times to review progress on agreed economic targets and to discuss future development goals.

Georgieva said the IMF values the efforts of Sharif and his cabinet in implementing what she described as “difficult but necessary reforms” aimed at strengthening Pakistan’s economy.

She noted that the government is enforcing reform measures seriously and that early benefits are becoming visible.

“For the first time, we are seeing budgetary discipline, with resources being directed toward improving people’s lives,” she said.

Pakistan has been working with the IMF for decades and is currently operating under a multiyear IMF lending program designed to stabilise the economy, strengthen fiscal management and control inflation.

In September 2024, the IMF approved a $7 billion, 37-month Extended Fund Facility for Pakistan, providing critical support to the country’s foreign exchange reserves.

Under IMF programs, loan disbursements are released in tranches after periodic reviews, contingent on meeting fiscal, monetary and structural reform benchmarks.

Pakistan has received multiple instalments under the current arrangement following successful reviews by IMF staff and the fund’s executive board.

The country’s economy has faced severe challenges in recent years, including high inflation, external debt pressures and climate-related disasters.

The government says IMF-backed reforms are necessary to restore macroeconomic stability and lay the groundwork for long-term growth.

Georgieva said the IMF will continue to work with Pakistan “in a positive manner,” provided the reform momentum is maintained.