The International Monetary Fund’s (IMF) Resident Representative, Mahir Binici, cautioned that despite recent improvements in economic indicators, macroeconomic vulnerabilities persist in Pakistan, stressing the importance of ongoing and credible reforms to ensure long-term stability and resilience.
The Pakistan Institute of Development Economics (PIDE) held a policy session on Friday, focusing on the successful completion of the second review under Pakistan’s IMF Extended Fund Facility (EFF), with the IMF’s representative, Mahir Binici, providing an in-depth analysis.
The session, which marked Binici’s first official visit to PIDE, brought together faculty, researchers, students, and policy professionals to discuss Pakistan’s economic outlook and reform priorities. Dr. Karim Khan, Dean of Academics at PIDE, inaugurated the session and emphasized the importance of evidence-based policy dialogue in addressing Pakistan’s economic challenges.
Binici provided a comprehensive overview of the second review under the EFF, approved on December 8, 2025, highlighting the program’s focus on building economic resilience and supporting sustainable growth.
He noted that the 2024 EFF incorporates lessons from previous arrangements, with an emphasis on macroeconomic stabilisation, fiscal consolidation, revenue mobilisation, inflation control, and strengthening the external sector.
While acknowledging recent improvements in economic indicators, Binici cautioned that macroeconomic vulnerabilities persist. He stressed that continued and credible reforms in areas such as the energy sector, state-owned enterprises, and governance are essential to sustaining economic stability and resilience.
On fiscal policy, Binici emphasised the importance of broadening the tax base, improving tax administration, and rationalising untargeted subsidies to create space for development spending and social protection measures. He also addressed inflation concerns, calling for a credible monetary policy framework to restore price stability and underscoring the importance of central bank independence.
Binici emphasised the role of a market-determined exchange rate in absorbing external shocks and enhancing export competitiveness. He also stressed that the successful implementation of reforms requires strong domestic ownership, with nationally driven and well-communicated policies helping build investor confidence and ensuring long-term growth.
The session concluded with an interactive Q&A, reflecting strong academic and policy interest in Pakistan’s ongoing engagement with the IMF.
Binici also acknowledged PIDE’s role in facilitating constructive dialogue between academia and policymakers, noting the value of research-driven analysis in shaping effective economic policies.
