Prime Minister Shehbaz Sharif has welcomed the latest financial tranche released by the International Monetary Fund (IMF), describing it as clear evidence that Pakistan is successfully implementing essential reforms for long-term economic stability.
In a statement, the prime minister said the IMF’s satisfaction with Pakistan’s reform progress reflects the “hard work and dedication” of Finance Minister Muhammad Aurangzeb and the government’s broader economic team. He said the fresh installment reaffirms that the country is on the right path toward sustainable development.
Shehbaz also acknowledged the role of military leadership, noting that Field Marshal Asim Munir’s support was crucial in driving the reform agenda and “paving the way for economic development.”
PM highlights sacrifices and political unity
The prime minister said Pakistan’s economic turnaround required tough decisions that demanded sacrifices from both political leaders and the public. He praised political parties for setting aside differences in the national interest and commended citizens for enduring economic hardship during the stabilization phase.
He added that Pakistan’s comprehensive reforms and ongoing digitization efforts have now become “a global example of successful economic transformation.”
Vision for a debt-free, self-sufficient Pakistan
Expressing optimism about future growth, Shehbaz Sharif reiterated that Pakistan will soon realize its dream of economic development. He reaffirmed his commitment to working “as a servant of Pakistan” until the country achieves complete relief from external debt.
Although the economy has stabilized, he emphasized that further work is required to transition toward sustained development. “The time is not far when Pakistan will be completely free from debts and economically self-sufficient,” he said.
IMF urges Pakistan to accelerate key reforms
Meanwhile, the IMF has acknowledged Pakistan’s recent stabilization efforts but urged the government to speed up structural reforms. IMF Deputy Managing Director Nigel Clarke emphasized the need for private sector-led growth, energy sector restructuring, and improved climate resilience.
Clarke said Pakistan’s tight monetary policy has helped control inflation, while fiscal and external deficits are declining. GDP growth is expected to rise from 3% to 3.2% this year.
He also welcomed the publication of Pakistan’s Governance and Corruption Report, stressing the importance of transparency in economic management.
Reforms highlighted by IMF
The IMF reiterated that long-term economic health requires:
Simplification of the tax system and broadening the tax base.
Restructuring and privatization of state-owned enterprises (SOEs).
Energy sector reforms to cut costs and address circular debt.
“These steps are essential for Pakistan’s competitiveness,” Clarke said.
On climate resilience, he noted that Pakistan must strengthen its capacity to withstand severe weather events. The IMF’s Resilience and Sustainability Facility (RSF), he added, is helping the country manage environmental and disaster-related challenges.
Pakistan secures next $1.2bn IMF tranche
On Monday night, Pakistan received approval for its next tranche exceeding $1.2 billion after meeting all key economic benchmarks. The disbursement falls under the $7 billion Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).
The IMF Executive Board in Washington reviewed Pakistan’s staff-level agreement and overall progress before approving the release.
