IMF okays staff-level deal for Pakistan to get $1.3bn package

#IMF #okays #stafflevel #deal #Pakistan #1.3bn #package

WASHINGTON: The International Monetary Fund staff reached an agreement with Pakistan for $ 1.3 billion in new arrangements, and the IMF also agreed on the first review of the 37 -month bailout program on Tuesday.

“During the last 18 months, Pakistan has made significant progress in restoring economic stability and reconstruction of confidence despite the global environmental environment,” the IMF said in a statement.

The fund announced its decision, saying that a new 28 -month -old contract will support Pakistan’s efforts to reduce and reduce the climate change.

Both the new program and loan reviews require approval from the fund’s executive board, which is largely a rubber sealing exercise.

According to the country’s Finance Ministry in the country’s monthly economic point of view, Pakistan’s inflation in March will remain stable in March. This has been after its low level of slowdown in almost a decade in the past month.

The IMF said, “After approval (by the IMF board), Pakistan will have access to about $ 1 billion under the EFF, which will make the total distributions under the program about $ 2 billion.”

The country’s finance minister expressed hope with the results of the policies that the government has implemented in accordance with the lender. Talking to Geo News from China, “We are committed to implementing taxation, energy and SOEs in relation to our country due to sustainable productivity and export.”

Inflation in the South Asian country has been falling for several months, which has increased by 40 % in May 2023 to 1.5 % in February.

Pakistan says its billion has been stabilized 350 billion under an IMF bailout of $ 7 billion, which has helped to avoid default.

The IMF said, “Although economic growth is moderate, inflation has decreased to its lower levels since 2015, financial conditions have improved, independent spread has decreased significantly, and external balance is stronger.”

Islamabad was waiting for the IMF deal about the first bailout review and the country’s annual budget, which is usually presented in June.

The IMF’s statement also noted what it has called Elevated negative threats such as “geographical political shocks in commodity prices, tightening global financial conditions, or tightening protectionism,” the IMF.

It has warned that such threats can damage Pakistan’s “hard -winning economic stability”.

The IMF statement issued today also stated that Pakistani authorities were committed to “gradually pursuing financial stability to permanently reduce public debt,” with strict monetary policy, cost reduction measures and reforms, as they agreed to the current 37 -month program.

“Moreover, climate risks are continuing a significant challenge to Pakistan, which creates a need to create flexibility, including adaptable measures,” said Nathan Porter, chief of the IMF mission, in the statement.

“In this regard, it is important to maintain this course and develop the progress made in the last one and a half years, further strengthen public finances, ensure stability in prices, eliminate the development of external buffers and support the development of strong, comprehensive and permanent private sector.”

“With the help of the RSF, the authorities’ program is determined to do so: (i) Strengthen the public investment process at all levels of the government to prioritize the flexibility of disaster; (iI) improve the efficiency of water resources, including better pricing mechanisms and the effective effects of the effects.