International Monetary Fund (IMF) Managing Director Kristalina Georgieva has applauded Pakistan’s government for taking ownership of difficult economic reforms, saying the measures are already showing positive results.

Speaking in Davos during the World Economic Forum’s annual meeting, Georgieva noted that budget discipline is beginning to create fiscal space for social improvements. “The Pakistani government has seriously embraced reforms and the fruits of action are already there,” she said.

She described the programme as Pakistan’s own initiative and highlighted constructive engagement with the country’s leadership. Georgieva praised Prime Minister Shehbaz Sharif’s commitment, remarking that when he makes a promise, “it gets done.”

Her comments followed a meeting with the prime minister, who briefed her on improving macroeconomic indicators, efforts to stabilise the economy, and progress on institutional reforms. The IMF chief acknowledged these steps but stressed the importance of maintaining momentum to secure long-term resilience.

Earlier this year, Pakistan launched a 142-point governance reform plan, including priority actions to strengthen institutions and uphold the rule of law. The government has also pledged to publish the first annual report of the Special Investment Facilitation Council by 2027 to enhance transparency in strategic investments.

In December, the IMF Board approved a $1.3 billion loan under the $7 billion Extended Fund Facility, granting waivers for missed targets but securing commitments for new tax measures and tighter monetary policy. The IMF has urged Pakistan to accelerate privatisation of state-owned enterprises and address inefficiencies in the power sector, with the recent privatisation of Pakistan International Airlines marking a significant step.

Both sides also discussed global economic challenges and the importance of multilateral cooperation, with Georgieva emphasising that Pakistan’s reform path must remain steady to ensure sustainable growth.