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
