IMF representative in Pakistan Esther Perez Ruiz has commended Pakistan's efforts toward economic recovery, noting that significant strides have been made in stabilizing the economy.
Speaking at an event in Islamabad, she emphasized that inflation has significantly decreased, and the country’s foreign exchange reserves have increased, reflecting the positive impact of recent economic policies.
Ruiz stated that the main objective of the IMF's Extended Fund Facility (EFF) is to improve the standard of living for the people of Pakistan. "This is the 21st program that the IMF is implementing in Pakistan, and it aims to balance micro and macroeconomic stability while enhancing the quality of life for citizens," she said.
The representative highlighted that Pakistan took its first major step towards economic recovery with the implementation of the Stand-By Arrangement in 2023, which instilled a renewed sense of confidence in economic policy. Since mid-2023, the country has witnessed a significant reduction in inflation and an increase in foreign reserves, signaling progress toward stabilization.
The 2024 EFF has a particular focus on accelerating Pakistan’s economic recovery, with a proposed fiscal agreement based on new revenue targets and the inclusion of provinces. Ruiz noted that reforms in the energy sector and the reduction of price controls are central to achieving sustainable development.
She also acknowledged the challenges ahead, particularly in balancing economic stability. “Efforts to stabilize economic conditions since 2023 have been commendable, but the road ahead requires strong policies to ensure the successful implementation of the 2024 EFF,” Ruiz remarked.
The IMF representative also emphasized the need for a solid strategy to foster financial stability in the private sector by promoting credit and eliminating government price controls. She added that reforms in trade rates would further support economic growth.
Perez Ruiz concluded by stating that recent improvements in the country’s foreign reserves and the reduction in the State Bank’s policy rate in 2023 will have a lasting positive impact on Pakistan’s economy. However, she stressed that continued progress will depend on the implementation of robust fiscal and monetary policies to sustain long-term growth.
