In the midst of Pakistan’s ongoing economic struggles, the government’s pursuit of another bailout program from the International Monetary Fund (IMF) has gained traction. In response, the IMF has expressed its readiness to collaborate with Pakistan in the upcoming months to address the nation’s fiscal and external stability challenges.
During a press briefing on Tuesday, IMF’s Communications Director Julie Kozack highlighted the willingness of the IMF to assist Pakistan. She stated, “The authorities have expressed interest in a successor IMF supported programme with the aim of resolving Pakistan’s fiscal and external stability challenges and laying the foundation for inclusive growth. And, of course, we stand ready to engage in programme discussions in the coming months.”
Kozack’s remarks came in response to inquiries regarding the Standby Arrangement (SBA) and Pakistan’s current economic status. She disclosed that the IMF’s Executive Board is scheduled to convene at the end of the month to approve the disbursement of the remaining $1.1 billion from the SBA following a staff-level agreement between Pakistan and the IMF.
Acknowledging Pakistan’s efforts in program implementation, Kozack emphasized the country’s commitment to ongoing policy reforms aimed at transitioning from stabilization to sustainable recovery. She noted positive developments in Pakistan’s economic and financial situation since the completion of the first review of the SBA, citing a resurgence in growth and confidence.
The recent staff-level agreement between Pakistan and the IMF paved the way for the final tranche release under the $3 billion SBA. Prime Minister Shehbaz Sharif hinted at the likelihood of a continuation of the IMF program for three years, following the agreement’s finalization on March 20.
Finance Minister Muhammad Aurangzeb disclosed plans for a meeting with the IMF in Washington on April 14 and 15 to discuss the details of the new loan program. He indicated that while the features of the fresh program would be deliberated during the meeting, comprehensive talks would subsequently occur in Pakistan.
As Pakistan navigates its economic challenges, the collaboration with the IMF signals a concerted effort to address fiscal and external stability issues, with hopes of fostering inclusive growth in the nation’s economy.
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