ISLAMABAD: International Monetary Fund (IMF) chief Kristalina Georgieva has praised Pakistan’s economic reform efforts, Prime Minister Shehbaz Sharif said on Wednesday as Islamabad gears up to present its annual federal budget this week.
Pakistan is expected to unveil its federal budget for the upcoming tax year on Jun. 12. Islamabad is continuing reforms in several sectors under a $7 billion IMF loan program that it agreed to in September 2024.
Financial analysts believe the government is likely to prioritize fiscal consolidation and revenue collection over broad relief measures to meet the IMF’s targets in the upcoming budget.
The prime minister was speaking to members of the National Economic Council (NEC), a constitutional body responsible for reviewing the country’s overall economic condition, when he said he spoke to Georgieva on Tuesday night.
“She was extremely appreciative of Pakistan’s sincere efforts,” Sharif said.
The Pakistani prime minister said 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 said.
Pakistan has relied on the IMF’s program to stabilize an economy battered in recent years by high inflation, a balance of payments crisis and dwindling foreign exchange reserves.
The US-Iran war since February this year has resulted in more headaches for Pakistan, as it grapples with surging fuel prices worldwide.
Pakistan, a heavy importer of fuel from Gulf countries, has raised prices of petroleum products since the US-Iran war began in February. Analysts warn the prolonged conflict is likely to batter the economy further and risks aggravating a balance of payments crisis in the country.
Inflation crossed 30 percent in Pakistan in May 2023 as the country grappled with a macroeconomic crisis triggered by depreciation of the rupee and low foreign reserves.
