The International Monetary Fund (IMF) has acknowledged that Pakistan’s economic system confronted a number of challenges, together with excessive inflation and rates of interest in addition to low international alternate reserves.
Julie Kozack, the director for strategic communications of IMF, underlined this at a digital information briefing the opposite day the place she additionally referred to the talks the IMF had been holding with Pakistan. “And of course, this is all coming on the back of devastating floods.”
She added that the worldwide lender needed the Pakistan authorities to provoke financial reforms that might significantly assist overcome belief deficit between the 2 sides.
She stated it was essential to get assurances from Pakistan’s exterior companions first earlier than the renewal of the package deal deal.
“Discussions are ongoing between the IMF staff and the Pakistani authorities towards a staff-level agreement on policies to complete the ninth review of Pakistan’s Extended Fund Facility. Timely financial assistance from external partners will be critical in supporting the authorities’ policy efforts and ensuring the successful completion of the review,” she added.
Julie additionally acknowledged that Pakistani authorities had been dedicated to the mandatory reforms and had began implementing decisive actions to stabilise the economic system and restore confidence.
The talks with Pakistan, she stated, additionally centered on offering area to accommodate the wants associated to the floods, together with by a rise in social help by the Benazir Earnings Assist Programme, which focused probably the most susceptible.
When requested what assurances Pakistan wanted from its exterior companions, the official stated: “At this point, ensuring that there is sufficient financing to support the authorities is of paramount priority.”
Explaining the hyperlink between these assurances and the IMF deal, Julie stated: “A staff-level agreement will follow once the few remaining points are closed. I can also say that financing assurances, right, what we’re looking for here, is a standard feature of all IMF programmes.”
She identified that in addition to the IMF’s help, Pakistan’s EFF-supported programme acquired financing from different multilateral establishments, together with the World Financial institution, the ADB, the AIIB and bilateral companions – notably China, Saudi Arabia, and the UAE.
“So, we do need to ensure that we have those financing assurances in place in order for us to be able to take the next step with Pakistan,” the IMF official stated, making it abundantly clear that Pakistan would wish to have these assurances for finalisation of the deal.
