IMF support and government reforms

Growth is up, inflation is down, and the economy is on a sound path,” stated International Monetary Fund (IMF) Managing Director Kristalina Georgieva while announcing the approval of Pakistan’s 25th loan, worth $7 billion, for the next three years. Nevertheless, the IMF cautioned that Pakistan still faces challenges, including a difficult business environment, an outsized state role, and a narrow tax base with low investment levels. It emphasised that Pakistan needs faster implementation of structural reforms, especially in addressing low productivity, economic openness, and resource misallocation. While welcoming the IMF’s approval, Prime Minister Shehbaz Sharif reaffirmed that this would be the last time Pakistan seeks financial support from the IMF.