Soon after the International Monetary Fund (IMF) released a fresh installment to Pakistan under its ongoing financial programme, Prime Minister Shehbaz Sharif welcomed the development, calling it proof that Pakistan is implementing essential measures for long-term economic stability.

In a statement, Prime Minister Sharif said the IMF’s satisfaction with the effective implementation of reforms is a “testament to the hard work” of Finance Minister Muhammad Aurangzeb and the broader economic team. He described the latest financial release as clear evidence that Pakistan is taking the necessary steps for stability and sustainable development.

The prime minister also acknowledged the crucial role of the military leadership, stating that Field Marshal Asim Munir’s support was instrumental in executing the reform agenda and “paving the way for economic development.”

PM highlights sacrifices, political unity

Shehbaz Sharif noted that steering the country toward economic stability required difficult, often painful decisions that demanded sacrifice from citizens and political leaders alike. He said political parties “made the impossible possible” by setting aside political interests, while the public endured economic hardship in the national interest.

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The prime minister added that Pakistan’s comprehensive economic reforms and digitization initiatives have now become “an example for the world as a successful case study.”

Vision for debt-free, self-sufficient Pakistan

Expressing optimism about Pakistan’s economic future, Shehbaz said the country’s dream of development will soon be realized. He reiterated his commitment to working “as a servant of Pakistan” until complete relief from external debt is achieved.

He emphasized that although Pakistan has stabilized its economy, more work is required as the country transitions toward sustained development. “The time is not far when Pakistan will be completely free from debts and economically self-sufficient,” he said.

Shehbaz assured that he will continue efforts until the full prosperity of the Pakistani people is secured. He said the path toward economic transformation remains challenging, but the government is determined to maintain momentum and deliver long-term relief.

Meanwhile, the IMF has acknowledged Pakistan’s recent economic stabilization efforts while urging the country to accelerate key reforms. IMF Deputy Managing Director Nigel Clarke emphasized the need for private sector-led growth, energy sector restructuring, and enhanced disaster resilience.

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Clarke noted that Pakistan’s reforms have helped stabilize the economy, with tight monetary policy playing a critical role in controlling inflation. Fiscal and external deficits are showing a downward trend, while GDP growth is expected to rise from 3% to 3.2% this year.

“Inflation expectations remain under control, and the economy has withstood multiple shocks,” Clarke stated. He also welcomed the publication of Pakistan’s Governance and Corruption Report, highlighting the importance of transparency in economic management.

Private sector and energy reforms are key

The IMF stressed that sustainable development requires high-quality private investment and accelerated private sector reforms. Clarke emphasized:

Simplifying the tax system and broadening the base for fiscal stability.
Reforming state-owned enterprises (SOEs) and privatization to improve the business environment.
Implementing energy sector reforms to reduce power generation and transmission costs and manage circular debt.

“These steps are essential for Pakistan’s competitiveness and long-term economic health,” Clarke said.

Climate, disasters, and resilience

Clarke highlighted the need to increase Pakistan’s capacity to cope with severe weather events. The Resilience and Sustainability Facility (RSF) program, he noted, is helping manage disaster risks, water, and climate-related challenges.

On Monday night, Pakistan secured approval for its next over $1.2 billion tranche from the IMF after successfully completing all key economic benchmarks. The disbursement falls under the country’s ongoing $7 billion Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programs.

The IMF Executive Board met in Washington to review Pakistan’s staff-level agreement and overall economic progress. Officials confirmed that Pakistan met its commitments under the program, leading to the approval of the next tranche.