IMF says Pakistan needs resolute policy implementation


NEW YORK – International Monetary Fund (IMF) spokesper­son Julie Kozack said yesterday a steadfast policy implementation is critical for Pakistan in the period ahead, af­ter the loan approval by the international lender.

“This will be critical for success of the pro­gramme and, of course, ultimately, for to aid and support the people of Pakistan,” the IMF spokesperson’s said in a press conference.

Under a short-term plan, the IMF had earli­er this week approved a nine-month $3 billion Stand-By Arrangement (SBA) for Pakistan to sup­port the authorities’ eco­nomic stabilisation pro­gramme.

The IMF has demanded Pakistan to strengthen its public fi­nances, increase its tax rev­enues, maintain discipline over non-critical prima­ry expenditure, and reduce the energy sector’s circu­lar debt. Kozack said the Fund had disbursed $1.2 billion to Pakistan — with the remaining amount to be granted after the two reviews in November and February.

“The new pro­gramme will anchor the authorities’ immediate ef­forts to stabilize the econ­omy […] and to ensure that the current balance of pay­ments need is filled,” the spokesperson said. “With due protection for the most vulnerable and pro­vide a framework for fi­nancing from multilater­al and bilateral partners to support […] government’s policies.”

While it is rel­atively a relatively short program, Kozack said it provides time for Pakistan to implement policies criti­cal to strengthening its do­mestic and external eco­nomic situation, thereby supporting sustainabili­ty.

She mentioned that re­solving Pakistan’s struc­tural challenges, of course, will likely require contin­ued reforms over the me­dium term to underpin the needed economic transfor­mations, strengthen inclu­sive growth prospects, and to create an environment conducive to renewed pri­vate capital inflows.__The Nation