ISLAMABAD: The International Monetary Fund has said that it intended to “quickly” reach deal with Pakistan on financial support from the Washington based lender as the South Asian country took “decisive steps” to align its policies with the economic reforms sought by the IMF.
In a statement, the IMF’s mission top official for Pakistan, Nathan Porter said, “Over the past few days, authorities in Pakistan have taken decisive steps to bring policies in line with the economic reform programme supported by the Washington based lender,”.
IMF-Pakistan
These steps, he added, included the passage of a budget by the country’s parliament that broadened the tax base while also opening up space for higher development and social spending, as well as measures towards enhancing the functioning of the foreign exchange market and tightening monetary policy to decrease inflationary and balance-of-payment pressures that affected especially the more vulnerable.
Nathan Porter said, “The team of IMF continues talks with Islamabad with the goal of quickly reaching a deal on financial support from the fund,”.
Earlier, Pakistan’s Prime Minister Shehbaz Sharif hoped that the International Monetary Fund (IMF) would announce a decision pertaining to release of bailout funds within a day or two.
He said this after a phone call to Kristalina Georgieva, International Monetary Fund (IMF) Managing Director, Tuesday. He said Pakistan’s ninth review by the IMF under the 2019 Extended Fund Facility for the release of a $1.2bn tranche is still pending with fewer than 10 days remaining the programme’s expiry on June 30.
It is to mention here that the country was expected to get around $1.2bn from the global lender in October 2022 as part of the EFF’s ninth review. But almost eight months has gone past and the tranche has not been materialized as the IMF says Pakistan has been unable to meet important prerequisites.
A statement released by the Prime Minister’s Office today said that the PM discussed the programme with the global lender’s chief. “In connection with the meetings held in Paris, the IMF director general acknowledged efforts by the finance minister and his team for completion of the programme,” it said.
“The prime minister also reiterated his determination to achieve the goals of improving the economic situation through joint efforts,” the handout added.
It also quoted Georgieva as saying that the Fund wanted Pakistan’s economic situation to improve and appreciated the commitment of the premier.
