By Staff Reporter
ISLAMABAD: Pakistan’s new $3 billion loan program from the International Monetary Fund (IMF) will anchor its immediate efforts to stabilize the economy and meet its balance of payments needs, a senior IMF official said.
Julie Kozack, the IMF’s director of strategic communications, said the nine-month standby arrangement (SBA) was aimed at supporting the government’s economic plan and policies, while protecting the most vulnerable and securing financing from other partners.
“While it is a relatively short program, it provides time for Pakistan to implement policies critical to strengthening its domestic and external economic situation, thereby supporting sustainability,” Kozack told a news briefing.
She said Pakistan would likely need continued reforms over the medium term to address its structural challenges, boost inclusive growth, and create an environment for private capital inflows.
“Steadfast policy implementation is critical in the period ahead. This will be critical for the success of the program and, of course, ultimately, to aid and support the people of Pakistan.”
The IMF executive board approved the bailout loan program of $3 billion this week after months of delay, boosting Pakistan’s financial stability ahead of elections this year.
Prime Minister Shehbaz Sharif sealed the bailout program after holding hour-long phone calls and several meetings with IMF Managing Director Kristalina Georgieva.
The IMF board approved the SBA for Pakistan on Wednesday, after the country completed a series of prior actions, including raising taxes and electricity tariffs, withdrawing an amnesty scheme, and bridging a funding gap for the external payment.
Kozack said the IMF stood ready to work with Pakistan and its government on efforts to restore sustainability and economic stability.
“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 create an environment conducive to renewed private capital inflows.”
Kozack reiterated that the IMF stands “ready to work with Pakistan and its government on efforts to restore sustainability and economic stability.”
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