PAKISTAN continues to receive appreciation from the International Monetary Fund (IMF) for its progress under Extended Fund Facility (EFF) programme.
In a statement, The IMF’s Resident Representative for Pakistan, Mahir Binici, has lauded the country’s strong performance and noted that early policy measures have played a pivotal role in restoring macroeconomic stability and rebuilding investor confidence, despite enduring external challenges. These remarks reflect growing international confidence in Pakistan’s economic management and reform agenda.
The IMF’s praise highlights the government’s disciplined approach in implementing critical reforms at a time when global economic uncertainty remains high. Economic indicators—such as improved foreign exchange reserves, reduced current account deficit and controlled inflation—have shown signs of stabilization. This improvement has not only been noted by the IMF but has also attracted positive attention from international financial institutions and credit rating agencies. However, while the early signs are promising, the real test lies in sustaining these gains and ensuring long-term economic resilience. We have historically experienced repeated boom-and-bust cycles, where short periods of growth are often followed by sharp downturns. To break free from this cycle, a consistent and unwavering commitment to reforms is essential. Key among these reforms is the need to strengthen the performance and governance of state-owned enterprises (SOEs), which continue to be a drain on public finances. Addressing inefficiencies through their revival under public-private partnerships or full privatization can plug major financial leakages and redirect resources toward more productive sectors of the economy. Moreover, the government must prioritize the uplift of the productive sectors—particularly agriculture, industry and technology—to create a foundation for sustainable, export-led growth. This will not only boost foreign exchange earnings but also create jobs and spur innovation. At the same time, it is crucial to protect the vulnerable segments of society. The low- and middle-income classes have borne the brunt of inflation and high utility bills, which have become a major burden on household budgets. Hence, special attention should be given to provide relief to the masses in the utility bills.
