The International Monetary Fund’s representative in Pakistan, Mahir Binici, has said that cautious fiscal policy and strict monetary discipline are essential for economic stability.
Addressing an event organised by the Sustainable Development Policy Institute (SDPI), he warned that tensions in the Middle East pose risks to the global economy, including Pakistan. He said the conflict has affected energy markets, trade routes and financial conditions.
Binici stated that Pakistan’s IMF programme remains on the right track, but stressed the need for better preparedness to deal with economic shocks. He added that the ongoing conflict in the Middle East would significantly slow economic growth in the region.
He added that oil-importing countries are facing rising energy and food prices, alongside serious risks such as a possible decline in remittances and tighter financial conditions.
The IMF representative said reforms under the loan programme are indispensable. He also presented the Regional Economic Outlook report for April 2026.
He said the war that began on 28 February has caused a severe economic shock, with energy markets, trade routes and financial conditions already affected. The conflict, he added, is exacerbating economic vulnerabilities in oil-importing countries.
He emphasised the importance of maintaining economic stability in Pakistan, strengthening fiscal and external buffers, and adopting targeted and temporary measures instead of broad subsidies to protect vulnerable groups.
Binici said Pakistan’s performance under the Extended Fund Facility programme remains on course.
He underlined that policy priorities for Pakistan include a cautious fiscal strategy, data-driven strict monetary policy and the continuation of structural reforms. He called for diversification of trade routes to make the economy more robust and resilient.
He also stressed investment in key infrastructure and the promotion of regional cooperation, adding that inclusive growth led by the private sector must be ensured. He said the reform process must continue on a sustained basis.
