International Monetary Fund Managing Director Kristalina Georgieva has stated that Pakistan’s economy “is on a sound path” due to the government’s reform efforts.
“We have successfully completed the review of the program,” Georgieva announced, expressing her congratulations to both the government and the people of Pakistan for their commitment to home-grown reforms.
“These reforms are yielding positive results—growth is increasing, inflation is decreasing, and the economy is stabilizing.”
Her comments followed a meeting with Prime Minister Shehbaz Sharif in New York, shortly after the IMF Executive Board approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement, amounting to approximately $7 billion. This approval builds on a staff-level agreement reached on July 12, aimed at bolstering macroeconomic stability and fostering inclusive, resilient growth.
When asked about the potential impact of these reforms on Pakistan’s poorer population, Georgieva noted, “I believe we are starting to see a trickle-down effect.
The government is focusing on increasing tax revenue from wealthier citizens while enhancing the Benazir social program to support those in need.”
Additionally, the Asian Development Bank (ADB) indicated that the reform agenda aligned with the IMF is expected to boost growth in Pakistan.
According to the Asian Development Outlook report for September, the comprehensive economic reform program is projected to elevate growth to a moderate 2.8% and decrease inflation in FY2025.
The ADB’s outlook also highlighted that private investment is likely to recover as macroeconomic conditions improve, including easier access to foreign exchange, benefiting both the manufacturing and services sectors.
