The International Monetary Fund (IMF) has voiced optimism about Pakistan’s economic performance, noting significant improvements under the Extended Fund Facility (EFF) program.

During a speech at the Sustainable Development Policy Institute (SDPI), the IMF representative and banking expert noted that while progress has been made, tackling political obstacles remains crucial for sustainable development.

Looking ahead, the expert projected further economic growth for Pakistan in 2025 and beyond, emphasizing the need for the government to prioritize expanding the tax revenue base and enhancing the electricity transmission and distribution systems.

Despite these positive developments, the IMF representative acknowledged ongoing challenges facing the Pakistani economy, including increasing trade tensions and global uncertainties.

She underscored the importance of prudent and forward-thinking policy decisions to navigate these issues effectively.

The representative also commended Pakistan’s advancements in environmental reforms, describing the initiatives taken as commendable.

Additionally, she highlighted the successful completion of the first review by the Executive Board in May as a significant milestone, reflecting better adherence to IMF recommendations.

Sources from the IMF indicated that decisions in the energy sector must shift towards transparent and reform-oriented approaches rather than relying on traditional methods to ensure the continuation of sustainable development efforts.