July 14, 2023 (MLN): Resolving Pakistan's structural challenges will likely require continued reforms over the medium term to underpin the needed economic transformations, Julie Kozack, International Monetary Fund (IMF) Director Communication stated.
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 the amount of $3 billion.
The immediate disbursement reached about $1.2 billion.
The new program will anchor the authorities’ immediate efforts to stabilize the economy.
With due protection for the most vulnerable and provide a framework for financing from multilateral and bilateral partners to support Pakistan.
She added that steadfast policy implementation is critical in the period ahead.
This will be critical for the success of the program and, of course, ultimately, 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.
The program ensures that the current balance of payments needed is filled.
While it is relatively a short program, it provides time for Pakistan to implement policies critical to strengthening it is the domestic and external economic situation, thereby supporting sustainability.
