The International Monetary Fund (IMF) has said that it is prepared to “engage” with Pakistan in the “coming months” in order to assist the nation in resolving “fiscal and external stability challenges,” as the government searches for another bailout package from the IMF.
The authorities have indicated interest in a follow-up program sponsored by the IMF that aims to address Pakistan’s fiscal and external stability issues and establish the groundwork for inclusive growth. In a news conference on Tuesday, Julie Kozack, the director of communications for the IMF, stated, “And, of course, we stand ready to engage in program discussions in the coming months.”
In answer to a query on the Standby Arrangement (SBA) and if Pakistan was out of the woods economically, Kozack discussed the new bailout package.
According to the head of IMF communications, the lender’s Executive Board will convene at the end of this month to authorize the release of the remaining $1.1 billion from the SBA in accordance with the staff-level agreement reached between Pakistan and the IMF.
The State Bank of Pakistan and the caretaker government have implemented a strong program in recent months, and Kozack said that the staff level agreement acknowledges this as well as the new government’s intentions for continuing policy and reform efforts to move Pakistan from stabilization to a strong and sustainable recovery.
Pakistan’s “economic and financial” circumstances have improved, according to the IMF official, since the conclusion of the SBA’s initial examination.
According to Kozack, “growth and confidence are continuing to recover.” She also mentioned that as part of the World Economic Outlook, the IMF would be releasing growth projections in the upcoming months.
The last tranche from the lender will be released on March 20th thanks to an agreement reached at the staff level between Pakistan and the IMF about the second and last review under the US $3 billion SBA.
Prime Minister Shehbaz Sharif hinted that the new IMF program will probably be extended for three years the day after the agreement was finalized.
