ISLAMABAD: Mahir Binici, the International Monetary Fund (IMF) country representative for Pakistan, has described Islamabad’s performance under a $7 billion IMF loan program as being “strong so far,” the Islamabad-based Sustainable Development Policy Institute (SDPI) think tank said on Sunday.

Binici said this in his guest lecture at the Institute, during which he shed light on the evolving economic landscape across the Middle East and North Africa (MENA) region and Pakistan.

Pakistan narrowly avoided a sovereign default in mid-2023 thanks to a shorter $3 billion IMF facility. In Sept. last year, Islamabad secured the 37-month, $7 billion program after meeting targets under the previous arrangement.

The IMF representative said Pakistan’s successful completion of the first review of its loan program, secured last year, by the IMF executive board in May 2025 was a “key milestone.”

“Early policy measures have helped restore macroeconomic stability and rebuild investor confidence, despite persistent external challenges,” Binici was quoted as saying in an SDPI statement.

He, however, cautioned that “elevated trade tensions, geopolitical fragmentation, and weakening global cooperation continue to generate exceptional uncertainty and weigh on the global economic outlook,” underlining the urgent need for prudent and forward-looking policy actions.

“Growth across the Middle East, North Africa (MENA) region, and Pakistan is expected to strengthen in 2025 and beyond,” Binici said.

The IMF representative reaffirmed the global lender’s continued support for Pakistan’s economic and climate reforms agenda.

“Structural reforms remain central to Pakistan’s long-term economic sustainability, particularly reforms that strengthen tax equity, improve the business climate, and encourage private-sector-led investment,” he said.

Binici’s comments came a day after Prime Minister Shehbaz Sharif defended his government’s structural reform agenda, particularly in tax administration, saying that difficult and often unpopular decisions were necessary to rebuild national institutions as the country could no longer afford “business as usual.”

Speaking at a session of the Uraan Pakistan youth development program, he said his administration took on the “onerous task” of stabilizing the economy under immense pressure, choosing to pursue long-delayed reforms rather than temporary fixes.

“Pakistan had to undertake these long-overdue, deep structural changes, if we had to find our lost place in the comity of nations through hard and untiring efforts,” he said.

Sharif noted the transition from paper-based tax systems to digital and AI-led processes was already bearing fruit and his administration had prioritized accountability and removing senior revenue officials accused of corruption, resisting political pressure in doing so.

“It’s a long and thorny journey,” he said, assuring merit would remain the cornerstone of his governance model. “We are facing bumps on the way and mountain-like impediments. But I can assure you, we will not shy away from discharging our responsibility.”