Julie Kazok has confirmed the development in a statement, saying that The IMF's Executive Board endorsed the first review of the Standby Arrangement on January 11 that resulted into disbursement of $1.9 billion to Pakistan.
ISLAMABAD: (UrduPoint/Pakistan Point News-Feb 23rd, 2024) The International Monetary Fund (IMF) vowed to collaborate with Pakistan's newly elected government to tackle economic challenges.
International lender Communication Director Julie Kazok commended the efforts of the caretaker government, emphasizing its pivotal role in maintaining economic stability, curbing inflation, and bolstering foreign exchange reserves through stringent monetary policies.
She stressed the IMF's commitment to safeguarding vulnerable sectors, highlighting the program's dual focus on economic stabilization and shielding those most vulnerable to financial shocks.
The IMF's Executive board endorsed the first review of the Standby Arrangement on January 11, resulting in the disbursement of $1.9 billion to Pakistan.
Reiterating the IMF's dedication to protecting the interests of Pakistan's impoverished population, Kazok expressed readiness to work with the newly elected government to achieve economic objectives.
She refrained from commenting on internal political matters and declined to address any statements regarding a letter purportedly written by PTI founder Imran Khan. Kazok stated, "The IMF refrains from issuing statements on such matters."
Before the previous bailout, Pakistan implemented a series of stringent measures mandated by the IMF, including budgetary revisions, increases in benchmark interest rates, and adjustments to electricity and natural gas tariffs.
The urgency for financial assistance arises from the imminent conclusion of a short-term IMF bailout program, which prevented Pakistan from defaulting last summer.
However, with the program set to expire next month, the incoming government faces the challenge of establishing a sustainable, long-term arrangement to stabilize the $350-billion economy.
According to Bloomberg, Pakistan is actively pursuing a substantial loan of at least $6 billion from the IMF to alleviate the burden of imminent debt repayments.
The discussions regarding an Extended Fund Facility with the IMF are expected to commence in the coming months, possibly as early as March or April.
