Pakistan, May 25, 2024-In the latest update, the IMF mission and Pakistan have moved closer to achieving a Staff-Level Agreement for extending the Extended Fund Facility. It can be viewed as a positive sign in the situation with Pakistan and its attempts to bring the country’s economy back on track and attract funds for this purpose.
The missions led by Nathan Porter visited Pakistan from 14-19 March 2024 to discuss the second review of Pakistan’s economic program under the IMF SBA. In the final stages of the discussions, Mr. Porter said that the IMF team had completed and signed the second and final review of the stabilization program with the Pakistani authorities.
The agreement acknowledges the robust program performance by SBP and the caretaker government in the last few months and the new government’s plans for continued policy and structural reforms for Pakistan from stabilization to solid recovery. When approved by the IMF’s Executive Board, Pakistan will receive SDR 828 million (approximately USD 1. 1 billion).
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The authorities also signal their interest in a successor medium-term Fund-supported program to address the vulnerabilities of Pakistan’s fiscal and external balances sustainably, reinforcing the country’s economic rebound and establishing the foundations for robust, inclusive, and sustainable growth. Some of the critical goals of the successor program may be as follows: consolidating the budget, rebalancing energy subsidies, bringing inflation back to target, and spurring growth through other forms of innovation.
The IMF mission expressed gratitude to the Pakistan authorities, private sector, and development partners for fruitful discussions and cooperation within the framework of the mission. The conclusion of the staff-level agreement is a significant achievement in the country’s endeavor to obtain much-needed financial assistance and undertake the required reforms to alleviate its economic hardships.
