IMF chief praises Pakistan’s reform efforts and economic stability progress

Rabbia Zafar | 4 weeks ago

IMF praises Pakistan economic reforms and stability

International Monetary Fund Managing Director Kristalina Georgieva has commended Pakistan for effectively implementing its IMF-supported programme, crediting the country’s policy discipline for maintaining macroeconomic stability and rebuilding investor confidence.

Her remarks came after a meeting with Finance Minister Muhammad Aurangzeb in Washington during the IMF–World Bank Spring Meetings. In a post on X, Georgieva noted that strong programme implementation has played a key role in stabilising Pakistan’s economy.

In its latest World Economic Outlook 2026, the IMF maintained Pakistan’s economic growth projection at 3.6% for the current fiscal year. However, this remains below the government’s target of 4.2%, reflecting broader global economic challenges, particularly those linked to ongoing tensions in the Gulf region.

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Meanwhile, Fitch Ratings has also acknowledged Pakistan’s progress in fiscal consolidation and macroeconomic management, stating that reforms are broadly aligned with IMF requirements and are supporting the country’s external financing capacity.

Pakistan and the IMF reached a staff-level agreement in March, paving the way for the release of around $1.2 billion in funding, pending approval by the IMF Executive Board. The disbursement includes support under both the Extended Fund Facility and the Resilience and Sustainability Facility, bringing total programme disbursements to approximately $4.5 billion.

Under the broader $7 billion programme, the IMF has advised Pakistan to maintain a tight, data-driven monetary policy to control inflation and strengthen foreign exchange reserves.

Georgieva emphasised that continued structural reforms and sound economic policies will be essential to sustaining growth and improving living standards. Pakistan’s Finance Ministry described her remarks as a sign of growing international confidence in the country’s economic direction.