IMF representative calls Pakistan's EFF performance 'strong'
The International Monetary Fund (IMF) has expressed satisfaction with Pakistan's economic progress, as its Resident Representative Mahir Binici described the country's performance under the Extended Fund Facility (EFF) as 'strong so far', Pakistan Television reported.
'Early policy measures have helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges,' he said.
Speaking during a guest lecture at the Sustainable Development Policy Institute (SDPI) on Sunday, Binici cited the successful completion of the first EFF review by the IMF Executive Board in May 2025 as a key milestone.
Read More: Pakistan receives second IMF tranche of $1.02b
Binici emphasised the importance of sustained structural reforms for Pakistan's long-term economic sustainability, especially in strengthening tax equity, improving the business environment, and encouraging private-sector-led investment.
He noted that growth across the region is projected to strengthen in 2025 and beyond, but warned that geopolitical tensions, trade disruptions, and declining global cooperation continue to weigh on recovery efforts.
The International Monetary Fund's Resident Representative for Pakistan, Mahir Binici has reaffirmed continued support for Pakistan's economic and climate reform agenda@IMFNews #RadioPakistan #News https://t.co/81tU4ZeG1M pic.twitter.com/wlLYss7wrS — Radio Pakistan (@RadioPakistan) July 13, 2025
Turning to climate resilience, Binici lauded Pakistan's efforts under the IMF's Resilience and Sustainability Facility (RSF), which supports countries addressing climate risks and meeting global environmental goals.
Key RSF reforms for Pakistan include better public investment planning, efficient water resource management, disaster preparedness, and improved climate data infrastructure.
'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.
SDPI Executive Director Dr Abid Qaiyum Suleri welcomed the IMF's ongoing engagement and highlighted the importance of dialogue and multilateral cooperation in promoting sustainable growth.
Also Read: Delhi kisses the dust as IMF approves $2.4b Pakistan loan
The session concluded with a policy discussion on fiscal and monetary frameworks, external financing buffers, and the evolving role of international institutions in supporting inclusive economic development.
About 3 months ago, the IMF team had reached a staff-level agreement with the Pakistani authorities on the first review of the 37-month Extended Arrangement under the EFF, and on a new 28-month arrangement under the IMF's Resilience and Sustainability Facility (RSF) with total access over the 28 months of around $1.3 billion.
Pakistan would continue fiscal consolidation to reduce public debt while creating space for social and development spending and reducing crowding out of private investment. Pakistan will also refrain from increasing current spending beyond that budgeted, indicating that no supplementary grants can be issued.
The IMF's new climate facility is meant to scale up climate reform efforts to reduce vulnerabilities to natural disaster risks and to build climate resilience. In return for the loan, Pakistan has committed to strengthen public investment processes across all levels of government to prioritize projects that enhance disaster resilience, said Porter.
The government will also improve the efficiency of scarce water resource usage, including through better pricing mechanisms, he added.
Also Read: IMF approves $7 billion EFF programme for Pakistan
It will enhance intergovernmental coordination on disaster financing; improve information architecture and disclosure of financial and corporate climate-related risks; and promote green mobility to mitigate significant pollution and adverse health impacts, said the IMF.
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