ISLAMABAD: The International Monetary Fund said that it will send its team for the second review of the Stand-by agreement as soon as the new cabinet is formed.
In a scheduled press briefing on Thursday, IMF Communication Director Julie Kozack said that the caretaker government has maintained economic stability ‘through strict adherence to the fiscal targets’.
She added that this was done by social safety net, maintaining a tight monetary policy stance to control inflation, and continuing to build foreign exchange reserves.
“The SBA supported program underpins the authority’s efforts to stabilize the economy with a strong emphasis on protecting the most vulnerable segments of the population,” she said.
Kozack said that a total of $1.9 billion has already been disbursed to Pakistan. However, the IMF would send a team for the second review so the final tranche could be released.
“The IMF stands ready to hold a mission for the second review of the Stand-by shortly after a new cabinet is formed,” Kozack said.
“We look forward to working with the new government on policies to ensure macroeconomic stability,” she added.
However, Kozack refused to comment on a question regarding political instability.
She reiterated that the Fund looked forward to working with the new government for ensure ‘macroeconomic stability, for the good of the people of Pakistan’.
Facing a near default situation last year, Pakistan managed to sign a SBA worth $3 billion in July to stabilise its economy.
However, the implementation of the program, which largely fell to the caretaker government, saw record high inflation in the country with protests breaking out across Pakistan over inflated electricity bills.
Kozack’s comments come a day after a news report revealed that India had tried to block another IMF program.
The report had revealed that India had asked its representative to convey to the IMF that ‘checks and balances and ensure a stringent monitoring’ were needed for funds handed over to Pakistan.
QUESTIONER: Anything related to political instability?
MS. KOZACK: I’m not going to comment on politics. Only to say that the IMF stands ready to send a mission after a new cabinet is formed, and we look forward to working with the government to ensure stability, macroeconomic stability, for the good of the people of Pakistan. Thank you.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
