ISLAMABAD: A consistency in reforms is essential to tackle the Pakistan’s structural challenges over the medium term to underpin the needed economic transformations. Julie Kozack, Director Communication of the International Monetary Fund (IMF) said on Friday.
She said, “This is necessary to strengthen inclusive growth prospects, and to create an environment conducive to renewed private capital inflows.”
“And of course, we at the IMF, we always stand ready to work with Pakistan,” she noted.
On July 12th, Executive Board approved a 9-month standby arrangement for Pakistan. In involved a $3 billion loan with immediate disbursement of $1.2 billion. On July 13, the IMF handed over the first tranche of SBA, $1.2 billion to Pakistan.
The new program will anchor the authorities’ immediate efforts to stabilize the economy, she added.
Julie said that steadfast policy implementation is critical in the period ahead.
Additionally, this will be essential for the success of the program and for aid and support to the people of Pakistan.
The standby [arrangement] is aimed at supporting the authority’s immediate effort to stabilize the economy.
IMF Director Communication further said, “it provides time for Pakistan to implement policies critical to strengthening it is the domestic and external economic situation, thereby supporting sustainability.”
Blinken seeks continuity of reforms in Pakistan
Meanwhile, Secretary of State Antony Blinken welcomed the IMF deal with Pakistan that revived the stalled program.
He said the United States stood by the Pakistani people during these hard times. Blinken said the International Monetary Fund’s (IMF) approval of a program will support economic revival in Pakistan.
He, therefore, urged Pakistan to continue working with the IMF to complete macroeconomic reforms and achieve sustainable economic recovery.
Earlier, Prime Minister Shehbaz Sharif said that the IMF’s $3 billion stand-by arrangement was a major step forward in the government’s efforts to revive the economy.
Premier said, “It will bolster Pakistan’s economic position to overcome economic challenges. He will also give the next government the fiscal space to chart the way forward.”
