ISLAMABAD: IMF Resident Representative for Pakistan Mahir Binici says Pakistan’s performance under the Extended Financing Facility (EFF) has been “strong so far” and expresses hope that its economic growth will strengthen this year.
Binici delivered a comprehensive lecture at the Sustainable Development Policy Institute (SDPI), where he highlighted the changing economic landscape in the Mena region and Pakistan.
He reaffirmed the International Monetary Fund’s continued support for Pakistan’s economic and climate reform agenda. Addressing economists, researchers and policy experts, Binici said growth in the Middle East, North Africa (MENA) and Pakistan region is expected to strengthen in 2025 and beyond.
He warned, however, that heightened trade tensions, geopolitical fragmentation and weakening global cooperation continued to generate exceptional uncertainty and weigh on the global economic outlook, underscoring the urgent need for prudent and forward-looking policy measures.
Focusing on Pakistan, Binici said the country’s performance under the EFF had been “strong so far”, adding that the successful completion of the first review by the IMF Executive Board in May 2025 was a key milestone.
“The initial policy measures helped restore macroeconomic stability and restore investor confidence, despite persistent external challenges,” Binici noted.
He stressed that structural reforms remain critical to Pakistan’s long-term economic viability, particularly reforms that strengthen tax fairness, improve the business climate and encourage private sector investment.
He also highlighted Pakistan’s progress on climate-related reforms under the IMF’s Resilience and Sustainability Fund (RSF).
According to Binici, the RSF is designed to help countries like Pakistan build resilience to climate-related vulnerabilities and meet international climate commitments. He mentioned that key areas of reform under the RSF included improving public investment planning, promoting 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. Binici emphasized:
“The support provided by the RSF will not only strengthen Pakistan’s climate resilience, but also help unlock green investments and drive a more climate-conscious economic trajectory.
SDPI Executive Director Dr. Abid Qaiyum Suleri welcomed the IMF representative’s outreach efforts, emphasizing the importance of informed economic dialogue and multilateral cooperation in the country’s journey towards sustainable development.
The conference concluded with an interactive discussion on fiscal and monetary policy frameworks, external buffers and the role of international institutions in promoting inclusive growth. Pakistan and the IMF had reached a staff-level agreement under the $7 billion EFF in March, aimed at ensuring economic stability and facilitating structural change.
