WASHINGTON: The International Monetary Fund (IMF) is ready to close a major financial program with Pakistan pending the formation of the country’s new cabinet, the organization confirmed on Thursday.
The financial organization is poised to finalize a $3 billion “standby arrangement” program for economically troubled Pakistan. Director of Communications at the IMF, Julie Kozak, recently confirmed this development at a press conference in Washington.
However, progress on the program is dependent on the formation of a new cabinet in Pakistan.
Pakistan’s current contingency arrangement expires in April 2024, and it has already received $1.9 billion under the program.
The country’s interim government played a key role in maintaining economic stability through strict fiscal policies aimed at curbing inflation and ensuring social security for its citizens.
Kozak discussed the importance of finalizing the current stand-by agreement with Pakistan. She said fiscal discipline and social safety nets during transition periods are essential to keep the country’s economy stable in uncertain times.
Efforts to maintain fiscal targets and increase foreign exchange reserves have been key priorities for Pakistan. In addition, the timely adjustment of rates in the energy sector contributed to economic stability.
Looking ahead, the IMF remains committed to finalizing the stand-by arrangement with Pakistan. After forming the cabinet, the IMF plans to send an economic assessment mission to ensure sustained growth and stability.
