The International Monetary Fund (IMF) has expressed satisfaction over Pakistan’s ongoing economic reforms, praising the government’s commitment to fiscal discipline, energy sector improvements, and structural adjustments, according to a statement from the Fund’s resident representative.
The remarks come as Islamabad awaits the release of the final tranche of the $3 billion Stand-By Arrangement (SBA), while simultaneously exploring prospects for a larger, long-term Extended Fund Facility (EFF).
IMF Acknowledges Reform Milestones
The IMF’s representative in Islamabad noted significant progress in key areas:
- Primary budget surplus targets met for two consecutive quarters
- Power sector reforms underway, including tariff adjustments and anti-theft initiatives
- Reforms to state-owned enterprises (SOEs) gaining traction
- Monetary tightening to contain inflation showing results
“The government has demonstrated strong resolve to maintain macroeconomic stability and build investor confidence,” the representative stated.
Market and Investor Confidence Rises
The IMF’s endorsement has been welcomed by:
- International investors, signaling improved credit outlook
- Currency markets, with the Pakistani rupee stabilizing against the dollar
- Local business leaders, who see momentum toward sustained recovery
The KSE-100 index also reflected positive investor sentiment, closing up by 350 points following the announcement.
Next Steps: Negotiating a Long-Term Programme
The government of Pakistan is in talks with the IMF for a new multi-year loan package, aimed at:
- Debt restructuring and management
- Continued focus on tax reform and digitalization
- Expanding the social safety net (BISP) while reducing untargeted subsidies
Finance Ministry officials expect formal discussions to begin later this month in Washington.
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