Staff Reporter
ISLAMABAD: The International Monetary Fund (IMF) on Thursday expressed its readiness to work with the newly formed coalition government of Prime Minister Shehbaz Sharif in Pakistan to conclude the ongoing $3 billion standby loan arrangement.
Julie Kozak, the IMF’s Director of Communication, said at a news briefing in Washington that the IMF is prepared to dispatch a mission to Pakistan following the establishment of the new cabinet.
“We look forward to working with the government to ensure stability, macroeconomic stability, for the good of the people of Pakistan,” Kozak said.
The IMF Executive Board had previously approved the first review of the Stand-by Arrangement with Pakistan in January, resulting in total disbursements of about $1.9 million. The program aims to stabilize the economy, with a particular focus on protecting the most vulnerable segments of the population.
Kozak highlighted the economic stability maintained by the authorities during the tenure of the last caretaker government.
“During the period of the last caretaker government, the authorities have maintained economic stability through strict adherence to the fiscal targets while protecting the social safety net, maintaining a tight monetary policy stance to control inflation, and continuing to build foreign exchange reserves,” she said. “And this has been done at the same time as implementing timely adjustments in tariffs to shore up the viability of the energy sector.”
The IMF plans to conduct a second review of the Stand-by Arrangement shortly after the formation of the new cabinet, with the program scheduled to conclude in April 2024. “We look forward to working with the new government on policies to ensure macroeconomic stability,” Kozak said.
While Kozak did not comment on Pakistan’s current political instability, the US State Department highlighted the importance of cooperation with the IMF and economic reforms for stability. A spokesperson conveyed the US’s support for the Pakistani people, acknowledging the challenges of high inflation and economic hardship. “Pakistan still faces enormous economic challenges and needs to implement structural reforms. This government has indicated that this will be at the top of their agenda,” the spokesperson told Dawn newspaper.
Copyright © 2021 Independent Pakistan | All rights reserved
