IMF chief Georgieva praises Pakistan's economic progress, reforms

International Monetary Fund (IMF) Managing Director (MD) Kristalina Georgieva has expressed optimism about Pakistan's economic trajectory, stating that the country's economy is heading in the right direction.

In a statement, Georgieva congratulated the government and the people of Pakistan for the successful implementation of the IMF’s $7 billion loan program. She commended the Pakistani government for its efforts to collect tax from the wealthy, while also providing support to the country’s most vulnerable populations.

She highlighted that Pakistan’s economic growth is picking up, inflation is falling, and the country is showing signs of significant improvement.

"The government has made substantial reforms, and the overall economic situation has improved," Georgieva noted, adding that these reforms are crucial to maintaining economic stability and securing long-term growth.

In a major development, the International Monetary Fund (IMF) Executive Board, during a meeting in Washington on Wednesday night, approved a much-awaited $7 billion loan for Pakistan.

The IMF Executive Board approved the $7 billion loan under the Expanded Fund Facility (EFF), and immediately released nearly $1 billion to help Pakistan address its economic challenges and restore macroeconomic stability.

In a statement announcing the new loan program, which spans 37 months, the IMF noted that Pakistan's economic growth rate has reached a modest 2.4% in the last fiscal year, and inflation fallen significantly to single digits.

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This improvement was largely driven by activities in the agricultural sector and the implementation of adequate fiscal and monetary policies, which helped keep the country’s current account deficit under control.

This allowed the foreign exchange reserves to improve again, while the decline in inflation reflects an improvement in the internal and external conditions, it added.