Pakistan has successfully reached a staff-level agreement with the International Monetary Fund (IMF), paving the way for the country to receive $700 million in financial assistance. This agreement, subject to approval by the Executive Board of the IMF, reflects the nation’s achievement of various economic targets and commitment to ongoing reforms.
According to the IMF, Pakistan has demonstrated progress in economic recovery under the program, and with the support of friendly countries, economic stability is gradually being restored. The implementation of the federal budget has provided policy continuity, and timely adjustments in electricity and gas prices have been carried out.
The staff-level agreement outlines the commitment to maintaining a market-based exchange rate, reducing inflation in the coming months, and easing pressure on the exchange market. The agreement also includes promises of reforms to stimulate investment and create employment opportunities. Pakistan has pledged to continue efforts to enhance macroeconomic sustainability and achieve a more balanced growth rate.
The IMF notes that external pressures on Pakistan’s economy, stemming from increasing energy prices and foreign exchange challenges, have diminished. The country has also committed to implementing reforms in government institutions and improving social assistance programs.
While acknowledging the positive trajectory, the IMF highlights potential challenges, such as external threats, geopolitical tensions, and the impact of rising commodity prices. Pakistan is urged to navigate these challenges and strengthen its resilience amid tough global financial conditions. A priority for the nation is to reduce public debt for financial stability.
The additional $700 million, once approved, will bring the total amount released by the IMF to Pakistan to $1.9 billion. It is essential to recall that a stand-by agreement of $3 billion was initially agreed upon between Pakistan and the IMF.
