IMF chief commends Pakistan for reforms, sees ‘fruits of action’

International Monetary Fund (IMF) Managing Director Kristalina Georgieva praised the government on Friday for “seriously” embracing reforms under its programme requirements, saying it was already yielding results.

Speaking to Pakistan TV on the sidelines of the 56th annual meeting of the World Economic Forum in Davos, Georgieva said: “Pakistani government has seriously embraced reforms and the fruits of action are already there.

“We are finally seeing the budget discipline bringing resources that can be deployed to improve lives of people.”

She said she looked forward to the continued implementation of the programme, describing it as a Pakistani programme.

Georgieva said the IMF had maintained constructive engagement with Pakistan for some time and expressed respect for Prime Minister Shehbaz Sharif, calling him serious. “When he gives his word that something would be done, it gets done,” she added.

Georgieva further said that meetings with the Pakistani leadership had been productive, with discussions focused on identifying areas of progress as well as those requiring further work, adding that the same approach was adopted during the latest engagement.

Read More: PM Shehbaz apprises IMF chief of improving economic indicators on WEF’s sidelines

The IMF chief also praised the seriousness of the prime minister and his cabinet in carrying forward difficult reforms for the country’s betterment.

Her remarks came a day after PM Shehbaz met Georgieva on the sidelines of the WEF and briefed her on Pakistan’s improving economic indicators.

The premier informed the IMF managing director about improvements in macroeconomic indicators, efforts towards stability and progress on institutional reforms. He also reiterated Pakistan’s commitment to fiscal discipline, revenue mobilisation and sustainable development.

The IMF managing director acknowledged Pakistan’s reform efforts and commended the progress made, while stressing the importance of maintaining the pace of reforms to ensure long-term economic resilience.

The two sides also exchanged views on the global economic outlook, challenges facing emerging economies and the importance of multilateral cooperation in maintaining economic stability.

Earlier this year, Prime Minister Shehbaz Sharif launched economic governance reforms aimed at addressing vulnerabilities identified in the IMF’s Governance and Corruption Diagnostic Assessment. The government has taken ownership of a 142-point reform agenda focused on institutional strengthening and the rule of law.

According to the prime minister, the governance plan comprises 59 priority actions and 83 complementary actions, all of which are to be implemented over the next three years.

As part of its commitments to the IMF, Pakistan has agreed to publish the first annual report of the Special Investment Facilitation Council (SIFC) by June 2027. A draft of the report will be submitted in December 2026, followed by the final version in March 2027.

The report aims to enhance transparency in strategic investments by making public details of all projects facilitated by the SIFC, including information on concessions granted, the rationale behind them, and their estimated fiscal value.

The International Monetary Fund (IMF) Executive Board in December last year approved a $1.3 billion loan, the third tranche under the $7bn Extended Fund Facility (EFF), following an assessment of Pakistan’s economic performance during the January–June period of the previous fiscal year.

The global lender granted waivers for Pakistan’s failure to meet some key programme conditions, while securing fresh commitments from the government to introduce additional tax measures to offset a significant revenue shortfall.

The IMF expressed concerns over widening tax gaps and persistent inefficiencies in the power sector, and urged the authorities to accelerate the privatisation of state-owned enterprises that continue to burden the national exchequer. As part of these efforts, Pakistan’s national flag carrier, Pakistan International Airlines (PIA), was privatised last month.

The IMF Board was assured that, for the completion of the next review under the $7bn programme, the government would introduce new tax policy measures, if required, to compensate for revenue shortfalls. It was also assured that an appropriately tight monetary policy stance would be maintained to keep inflation under control.