Following the establishment of a new cabinet, the International Monetary Fund (IMF) is preparing to deploy its mission to Pakistan to oversee the progress of the $3 billion Stand-by Arrangement (SBA) program aimed at aiding the financially strained nation.
The announcement was made by Julie Kozack, Director of the IMF’s Communications Department, during a press briefing in Washington, DC. Kozack addressed inquiries regarding the IMF’s evaluation of Pakistan’s external financial requirements for the 2024 fiscal year, the size of the IMF’s forthcoming program, and the risks associated with the country’s current situation.
Kozack revealed that on January 11, the IMF Executive Board approved the first review of the Stand-by Arrangement, resulting in total disbursements of approximately $1.9 million. She emphasized that the SBA-supported program aims to stabilise the economy, with a strong focus on safeguarding the most vulnerable segments of the population.
The IMF’s communication director highlighted the Pakistani authorities’ commitment to maintaining economic stability during the caretaker government’s tenure by adhering to fiscal targets, safeguarding social safety nets, implementing tight monetary policies to control inflation, and bolstering foreign exchange reserves. She noted the timely adjustments in tariffs to ensure the energy sector’s viability.
Regarding the IMF mission’s visit to Pakistan, Kozack stated that they are prepared to conduct a mission for the second review of the Stand-by shortly after the formation of a new cabinet.
She reiterated the IMF’s current focus on completing the existing SBA program, which concludes in April 2024, and expressed readiness to collaborate with the new government to ensure macroeconomic stability.
When questioned about the IMF’s stance on political stability in Pakistan, Kozack refrained from commenting directly but emphasized the Fund’s commitment to collaborating with the government to uphold macroeconomic stability for the benefit of the Pakistani people.
