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Home World News Asia

IMF supports Pakistan PM’s decisive actions for betterment of economy

February 12, 2025
in Asia
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International Monetary Fund (IMF) logo. File
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The International Monetary Fund (IMF) on Wednesday (February 12, 2025) expressed support for decisive actions by Prime Minister Shehbaz Sharif’s government for the betterment of Pakistan’s economy.

Pakistan and the IMF last year signed a $7 billion Extended Fund Facility (EFF) loan programme to help the cash-strapped country tackle its balance of payment issue while implementing tough conditions.

IMF Managing Director Kristalina Georgieva, who met CM Sharif during the Prime Minister’s visit to the United Arab Emirates, in a post on X said, “I am encouraged by their strong commitment to Pakistan’s IMF-supported reforms and support their decisive actions to pave the way to higher growth and more jobs for Pakistan’s youthful population.”

The comments come amid the IMF team’s visit to Pakistan to scrutinise the judicial and regulatory system as part of the ongoing $7 billion programme to address governance and corruption vulnerabilities.

According to a statement from the PM Office, the premier held a meeting with the IMF chief on the sidelines of the World Governments Summit (WGS) in Dubai where both sides discussed Pakistan’s ongoing IMF programme, and the macroeconomic stability achieved through the government’s comprehensive reform agenda.

The meeting focused on Pakistan’s commitment to implementing structural reforms and maintaining fiscal discipline, “which had been instrumental in restoring economic stability and would be critical in driving sustainable growth”.

The Prime Minister talked about the progress made under the programme, attributing the economic progress to the bailout deal.

Furthermore, he reaffirmed the government’s resolve to sustain reforms, particularly in tax reforms, energy sector efficiency, and private sector development.

It added that the IMF chief commended the country’s efforts “in effectively implementing the IMF-supported programme, highlighting the country’s improving economic performance with rising growth and declining inflation”.

She recognised that Pakistan was “on the growth path and has undergone economic recovery”, further reiterating the IMF’s support for its reform agenda.

The premier was on a two-day visit to the UAE alongside Foreign Minister Ishaq Dar at the invitation of President Mohamed bin Zayed to participate in the WGS.

According to the Associated Press of Pakistan, Finance Minister Muhammad Aurangzeb said the IMF chief was “full of praises” regarding the prime minister’s leadership and commitment to the reform-based programme.

Speaking at a conference organised by the Securities and Exchange Commission of Pakistan, Mr. Aurangzeb highlighted the focus on structural reforms on the taxation side, energy side, state-owned entities (SOEs) reforms, and public finance in terms of right-sizing the federal government and pension reforms.

“That’s what the managing director, Kristalina, was full of praise for Tuesday (February 11, 2025),” he said. “For the prime minister and the leadership and conviction he has shown, and the commitment the country has shown in terms of this reform-based programme, for which we are well underway in that programme,” he added.

Published – February 12, 2025 07:08 pm IST

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