International Monetary Fund (IMF) Managing Director Kristalina Georgieva has commended Pakistan’s economic reform initiatives, Prime Minister Shehbaz Sharif stated on Wednesday, as the nation prepares to unveil its annual federal budget later this week.
Pakistan is scheduled to present its federal budget for the upcoming tax year on June 12. The government continues to implement reforms across multiple sectors under a $7 billion IMF loan program agreed upon in September 2024.
Financial analysts anticipate that the government will prioritize fiscal consolidation and revenue generation over broad relief measures to satisfy IMF targets in the forthcoming budget.
The prime minister addressed members of the National Economic Council (NEC), a constitutional body that reviews the country’s overall economic condition, and disclosed that he had spoken with Georgieva on Tuesday night.
“She was extremely appreciative of Pakistan’s sincere efforts,” Sharif remarked.
Sharif emphasized that it is the collective responsibility of the federal government and all provinces to promote employment, production, exports, and economic activity.
“In this regard, we have all tried to follow the IMF program despite the difficulties that we have faced,” Sharif added.
Pakistan has relied on the IMF program to stabilize an economy that has been battered in recent years by high inflation, a balance of payments crisis, and dwindling foreign exchange reserves. The US-Iran war, which began in February this year, has created additional challenges for Pakistan as it grapples with surging global fuel prices.
As a major importer of fuel from Gulf countries, Pakistan has raised petroleum product prices since the onset of the US-Iran conflict in February. Analysts caution that the prolonged conflict is likely to further strain the economy and risks exacerbating a balance of payments crisis in the country.
Inflation in Pakistan exceeded 30 percent in May 2023 as the country contended with a macroeconomic crisis triggered by the depreciation of the rupee and low foreign reserves.
