The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has expressed confidence in Pakistan’s ongoing economic reform efforts, stating that the country has shown determination in implementing politically challenging measures agreed under its IMF-supported programme. Her remarks came during interactions on the sidelines of the World Economic Forum in Davos, where she met with Pakistan’s leadership to review progress and discuss the road ahead.
Georgieva noted that Pakistan’s recent reform steps are beginning to translate into visible fiscal outcomes, particularly through improved budget discipline. According to her, tighter control over public finances has created room for the government to redirect resources toward social protection and public welfare, an outcome that aligns with the broader objectives of the IMF programme.
She said the Fund was encouraged not only by the pace at which reforms are being implemented, but also by the intent demonstrated by the government in following through on difficult policy commitments. These measures, she acknowledged, are often politically sensitive and challenging to sustain, especially in a high-inflation and low-growth environment. Despite these pressures, Pakistan has continued to move forward with the agreed reform agenda.
Georgieva highlighted that her discussions with Prime Minister Shehbaz Sharif focused on assessing the progress made so far and identifying areas where further effort and policy refinement are required. She said the engagements reflected a constructive dialogue, centered on maintaining reform momentum while addressing structural weaknesses in the economy.
According to the IMF chief, Pakistan’s cabinet and senior leadership have shown resolve in advancing reforms even amid domestic resistance. This commitment, she said, is a key factor in building credibility with international partners and restoring confidence in the country’s economic management. She reaffirmed the IMF’s confidence in Pakistan’s reform trajectory and expressed support for the continuity of the programme.
Pakistan is currently operating under an IMF-supported framework aimed at stabilizing the economy, restoring external balance, and rebuilding foreign exchange buffers. The programme includes measures related to fiscal consolidation, energy sector reforms, revenue mobilization, and improved governance of state-owned enterprises. While these steps have weighed on short-term economic activity, the IMF has consistently argued that they are necessary to lay the foundation for sustainable growth.
Georgieva’s comments come at a time when Pakistan has begun to show signs of macroeconomic stabilization. Inflation has eased significantly from last year’s peak, the current account position has improved, and foreign exchange reserves have strengthened compared to earlier crisis levels. IMF officials have repeatedly emphasized that maintaining reform consistency is critical to preserving these gains.
The IMF chief also underscored that sustained implementation is essential for ensuring that early improvements translate into long-term economic resilience. She said continued engagement between the Fund and Pakistani authorities would focus on safeguarding fiscal discipline, protecting vulnerable segments of society, and advancing structural reforms that support private sector-led growth.
For Pakistan, IMF backing remains a key anchor for economic policy, influencing investor confidence, access to international capital markets, and support from other multilateral lenders. Georgieva’s reaffirmation of confidence is therefore seen as an important signal for markets and development partners monitoring the country’s reform path.
While challenges remain, including managing public expectations and sustaining political consensus, the IMF’s endorsement suggests that Pakistan has regained a measure of credibility after years of economic volatility. As discussions on programme continuity progress, policymakers will be under pressure to maintain reform momentum and demonstrate that stabilization gains can be converted into inclusive and durable growth.
The IMF has indicated it will continue to work closely with Pakistan to ensure that reforms remain on track, reinforcing the view that the country has moved from crisis management toward a more stable, though still demanding, phase of economic adjustment.
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