Says structural reforms key to economic sustainability
The International Monetary Fund’s (IMF) Resident Representative for Pakistan, Mahir Binici, has noted that the country’s performance under the IMF’s Extended Fund Facility (EFF) has been “strong so far”.
Delivering a comprehensive lecture at the Sustainable Development Policy Institute (SDPI) in Islamabad, he said that the successful completion of the first review by the IMF Executive Board in May 2025 was a key milestone, according to a press release issued on Sunday.
“Early policy measures have helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges,” Binici remarked.
He emphasised that structural reforms remain central to Pakistan’s long-term economic sustainability, particularly those that strengthen tax equity, improve the business climate, and encourage private-sector-led investment.
Binici also underscored Pakistan’s progress on climate-related reforms under the IMF’s Resilience and Sustainability Facility (RSF), designed to help countries address climate vulnerabilities and meet international environmental commitments.
He identified several priority areas under the RSF, including enhancing public investment planning, promoting the efficient and sustainable use of water resources, improving institutional coordination for disaster preparedness and financing, and expanding the availability and transparency of climate-related data. “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,” he said.
Addressing an audience of economists, researchers, and policy experts, Binici also discussed the evolving economic landscape across the Middle East, North Africa (MENA) region, and Pakistan, while reaffirming the IMF’s continued support for Pakistan’s economic and climate reform agenda.
Binici noted that economic growth in the MENA region and Pakistan is projected to strengthen in 2025 and beyond.
However, he cautioned that elevated trade tensions, geopolitical fragmentation, and declining global cooperation continue to create exceptional uncertainty, weighing on the global economic outlook. This, he said, underscores the urgent need for prudent, forward-looking policy action.
Dr Abid Qaiyum Suleri, Executive Director of SDPI, welcomed the IMF representative’s outreach, emphasising the value of informed economic dialogue and multilateral cooperation in advancing Pakistan’s sustainable development goals.
The lecture concluded with an interactive discussion on key issues such as fiscal and monetary policy frameworks, external financial buffers, and the role of international institutions in fostering inclusive growth.
