Webdesk: Pakistan had high inflation, interest rates, and foreign exchange reserves, according to the IMF.
At a recent virtual news briefing. IMF director for strategic communications Julie Kozack stressed this and mentioned the IMF’s Pakistan talks. This follows terrible floods.
She stated that the global lender wanted Pakistan to implement economic reforms to build trust.
She added Pakistan’s external partners should give assurances before renewing the package arrangement.
The IMF and Pakistani authorities are negotiating a staff-level policy agreement. It is to conclude the ninth review of Pakistan’s Extended Fund Facility. She noted that timely financial help from external partners will complement the authorities’ policy efforts and ensure the review’s success.
Julie also noted that Pakistani authorities dedicated to reforms. They had taken strong steps to stabilise the economy and restore trust.
She said the talks with Pakistan also addressed flood requirements, including increasing social assistance under the Benazir Income Support Programme for the most vulnerable.
The official stated, “At this point, ensuring that there is sufficient financing to support the authorities is of paramount priority.”
Julie explained how these promises relate to the IMF deal: “A staff-level agreement will follow once the few remaining points are closed. I can also clarify that funding assurances—what we’re looking for—are normal in all IMF programmes.”
Pakistan’s EFF-supported initiative got funding from the IMF, the World Bank, the ADB, the AIIB, and bilateral partners like 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 added, making it plain that Pakistan would need them to finalise the deal.
