The International Monetary Fund has expressed strong support for Pakistan’s ongoing economic reform programme, committing $1.3 billion under the Resilience and Sustainability Facility to help strengthen the country’s fiscal stability, financial systems, and climate resilience. The endorsement came from IMF Deputy Managing Director Bo Li, who described Pakistan as a strong example of a country moving in the right direction through reform and institutional resilience, according to an official statement issued by the Finance Division.
The RSF funding is designed to support a wide range of climate and fiscal reforms, including the introduction of green budgeting frameworks, climate-risk assessment mechanisms, improvements in public data transparency, and long-term planning for climate-resilient infrastructure. These measures are intended to help Pakistan better manage climate-related shocks while improving governance and financial accountability across government institutions. The IMF’s commitment reflects growing international confidence in Pakistan’s reform trajectory, particularly as the country navigates both economic recovery and climate vulnerability.
The announcement coincided with Finance Minister Muhammad Aurangzeb’s participation in the 23rd Doha Forum, held on December 6 and 7, where he addressed critical issues related to global trade tensions and economic cooperation in the Middle East and North Africa region. During his address, Aurangzeb highlighted Pakistan’s improving fiscal indicators, noting that the country had achieved a primary fiscal balance along with a current account surplus. He credited strong remittance inflows, estimated at around $18–20 billion annually from MENA and GCC countries, as a major contributor to this stability.
Aurangzeb also outlined Pakistan’s expanding trade and export strategy, with particular emphasis on technology-driven growth. He stated that IT services exports are projected to reach nearly $4 billion by 2025, reflecting the country’s growing footprint in the global digital services market. He further highlighted Pakistan’s strengthening economic links with Gulf states and Central Asian countries such as Azerbaijan, Turkmenistan, and Kazakhstan, which are expected to open new trade and investment corridors.
Climate change remained a central theme of the discussions, as Aurangzeb called for urgent international climate financing following severe flooding that reportedly reduced Pakistan’s GDP by at least 0.5 percent this year. He stressed that climate resilience is no longer optional for developing economies and must be backed by long-term global financial support to protect vulnerable populations and infrastructure.
On the sidelines of the forum, Aurangzeb held bilateral talks with Qatar’s Finance Minister, H.E. Ali Bin Ahmed Al Kuwari. The two sides reaffirmed their commitment to deepening economic and technological cooperation, highlighting the GCC–Pakistan Free Trade Agreement as a key milestone for expanding bilateral trade and collaboration, especially in liquefied natural gas (LNG). Qatar also recognised Pakistan’s growing pool of digital talent as a strategic asset, particularly in artificial intelligence and emerging technology sectors.
The finance minister also addressed Pakistan’s strategic development roadmap, noting the transition to CPEC Phase 2 and the establishment of new collaborative frameworks with the United States in critical areas such as minerals, mining, artificial intelligence, blockchain, and Web 3.0 technologies. He stressed the importance of upskilling Pakistan’s youth and freelancer workforce, enabling them to participate in high-value digital markets and increase income potential.
The IMF’s Executive Board is scheduled to review Pakistan’s request for a $1.2 billion disbursement on December 8, covering the second review under the Extended Fund Facility and the first review under the RSF. Bo Li reiterated that the IMF remains committed to supporting Pakistan’s efforts to build long-term resilience against fiscal, economic, and climate-related risks.
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