The International Monetary Fund's top representative in Pakistan praised the country's macroeconomic reforms and climate resilience efforts during a lecture at a policy institute over the weekend, signaling continued international support for the nation's economic recovery.
Mahir Binici, the IMF's resident representative in Pakistan, told an audience of economists and policymakers that Pakistan has shown "strong performance" under the IMF's Extended Fund Facility program, which aims to stabilize the economy through structural reforms.
"Early policy measures have helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges," Binici said during his lecture at the Sustainable Development Policy Institute in Islamabad.
The comments come after Pakistan successfully completed its first review under the current Extended Fund Facility program, which the IMF Executive Board approved in May.
Regional economic outlook
Binici said economic growth across the Middle East, North Africa region and Pakistan is projected to strengthen in 2025 and beyond as countries recover from recent global disruptions.
However, he warned that "elevated trade tensions, geopolitical fragmentation, and weakening global cooperation" continue to create uncertainty for the global economy.
The IMF official emphasized that these challenges require "prudent and forward-looking policymaking," particularly in countries like Pakistan undergoing structural economic transitions.
Climate resilience focus
A key part of Binici's remarks focused on Pakistan's participation in the IMF's Resilience and Sustainability Facility, a program designed to help climate-vulnerable countries address long-term environmental risks.
Under the facility, Pakistan is implementing reforms in several areas:
- Enhancing public investment planning for climate adaptation projects
- Promoting sustainable water resource management
- Strengthening disaster preparedness and financing mechanisms
- Improving climate data availability and transparency
"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 said.
Pakistan is among the first countries in the region to access the facility, reflecting its commitment to align development priorities with international climate goals, including the Paris Agreement.
Continued challenges
While praising Pakistan's progress, Binici stressed that sustained momentum on structural reforms remains critical, particularly in tax equity, improving the business environment and fostering private-sector investment.
Dr. Abid Qaiyum Suleri, executive director of the Sustainable Development Policy Institute, welcomed the IMF's continued engagement and emphasized the importance of "informed economic discourse and policy coordination" for Pakistan's sustainable development goals.
During a question-and-answer session, participants asked about Pakistan's fiscal and monetary policy frameworks, foreign exchange reserves and social protection mechanisms during economic adjustment periods.
Binici reiterated the IMF's commitment to supporting Pakistan through financial resources, technical assistance, policy advice and capacity-building.
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