Prime Minister Shehbaz Sharif has reaffirmed his government’s commitment to accelerating institutional reforms and sustaining macroeconomic stability, following commendation from the International Monetary Fund (IMF) for Pakistan’s recent economic progress. During a meeting with an IMF delegation led by Jihad Azour, Director of the Middle East and Central Asia Department, PM Shehbaz emphasized that Pakistan is transitioning from economic stability towards sustainable growth, with institutional reforms being pivotal for long-term resilience.
The IMF delegation acknowledged the positive outcomes of the government’s reform agenda and assured continued support for Pakistan’s efforts towards economic stability and inclusive growth. This meeting precedes the presentation of the fiscal year 2025-26 budget, scheduled for June 2.
Earlier in May, the IMF approved the immediate disbursement of approximately $1 billion under the Extended Fund Facility (EFF) and sanctioned an additional $1.4 billion arrangement through the Resilience and Sustainability Facility (RSF). These approvals reflect the IMF’s confidence in Pakistan’s policy efforts, which have led to a primary surplus of 2% of GDP in the first half of FY25, a historic low inflation rate of 0.3% in April, and an increase in gross reserves to $10.3 billion by the end of April.
The RSF aims to bolster Pakistan’s resilience against natural disasters and support climate-related initiatives, aligning with the country’s broader objectives of economic and environmental sustainability.