IMF urges implementation of policies, financial support

ISLAMABAD: The timely and decisive implementation of policies along with resolute financial support from official partners are critical for Pakistan to successfully regain macroeconomic stability and advance its sustainable development, says the International Monetary Fund (IMF).

The IMF mission led by Nathan Porter visited Islamabad during January 31–February 9 to hold discussions under the ninth review of the authorities’ programme supported by the IMF Extended Fund Facility (EFF) arrangement.

An official statement issued at the conclusion of the visit noted that this mission will not result in a Board discussion. Virtual discussions will continue in the coming days to finalize the implementation details of policies.

At the end of the visit, Porter issued the following statement: “The IMF team welcomes the Prime Minister’s commitment to implement policies needed to safeguard macroeconomic stability and thanks the authorities for the constructive discussions.”

“Considerable progress was made during the mission on policy measures to address domestic and external imbalances. Key priorities include strengthening the fiscal position with permanent revenue measures and reduction in untargeted subsidies, while scaling up social protection to help the most vulnerable and those affected by the floods; allowing the exchange rate to be market determined to gradually eliminate the foreign exchange shortage; and enhancing energy provision by preventing further accumulation of circular debt and ensuring the viability of the energy sector.

The timely and decisive implementation of these policies along with resolute financial support from official partners are critical for Pakistan to successfully regain macroeconomic stability and advance its sustainable development”, it added.

Copyright Business Recorder, 2023