ISLAMABAD: Resolving Pakistan’s structural challenges will likely require continued reforms over the medium term to underpin the needed economic transformations, strengthen inclusive growth prospects and create an environment conducive to renewed private capital inflows. This was stated by IMF Director Communication Julie Kozack during a press briefing.
She stated that on 12th July, the IMF Executive Board approved a 9-month stand-by arrangement for Pakistan in the amount of $3 billion.
IMF Executive Board approves $3bn Stand-By Arrangement for Pakistan
This programme is aimed at supporting the authority’s economic stabilization plan and economic stabilisation programme.
The IMF official further stated that the immediate disbursement reached about $1.2 billion.
The new program will anchor the authorities’ immediate efforts to stabilize the economy.
With due protection for the most vulnerable and provide a framework for financing from multilateral and bilateral partners to support Pakistan’s the Pakistan government’s policies.
She stated, “Steadfast policy implementation is critical in the period ahead. This will be critical for [the] success of the programme and, of course, ultimately, for to aid and support the people of Pakistan”.
Replying to a question regarding the relatively short programme, she said that the standby arrangement aims to support the authority’s immediate effort to stabilise the economy and ensure that the current balance of payments needed is filled.
While it is relatively a short programme, it provides time for Pakistan to implement policies critical to strengthening its domestic and external economic situation, thereby supporting sustainability.
“Of course, resolving Pakistan’s structural challenges will likely require continued reforms over the medium term to underpin the needed economic transformations, to strengthen inclusive growth prospects, and to create an environment conducive to renewed private capital inflows. And of course, we at the IMF, we always stand ready to work with Pakistan and the Pakistani government on these efforts to restore sustainability and economic stability,” the IMF official added.
Copyright Business Recorder, 2023