The International Monetary Fund (IMF) has expressed its readiness to conduct a mission for the second review of the stand-by arrangement once a new cabinet is established, according to Julie Kozack, the Communication Director of the IMF, during a media briefing.
Kozack noted that on January 11, the IMF Executive Board greenlit the first review of the stand-by arrangement with Pakistan, resulting in total disbursements amounting to approximately $1.9 million.
The stand-by arrangement aims to support the government’s endeavors to stabilize the economy, particularly focusing on safeguarding the most vulnerable sections of the population.
The IMF official highlighted that, under the caretaker government’s stewardship, economic stability was maintained through strict adherence to fiscal targets. This involved preserving the social safety net, enforcing a vigilant monetary policy to manage inflation, and bolstering foreign exchange reserves. Simultaneously, timely adjustments in tariffs were implemented to enhance the energy sector’s viability.
Emphasizing the IMF’s commitment, Kozack stated, “The IMF stands ready to hold a mission for the second review of the Stand-by shortly after a new cabinet is formed. The focus, therefore, is currently on completion of the current stand-by program, which ends in April 2024. We look forward to working with the new government on policies to ensure macroeconomic stability.”
Responding to queries about political stability, she refrained from commenting on politics but reiterated the IMF’s preparedness to collaborate with the incoming government to guarantee macroeconomic stability for the benefit of the people of Pakistan.
