Pakistan has met all International Monetary Fund (IMF) targets according to the findings of a review conducted since the country was awarded a $6 billion IMF loan in July, Mission Chief Ernesto Ramirez Rigo stated in a conference call
MOSCOW (Pakistan Point News / Sputnik - 24th December, 2019) Pakistan has met all International Monetary Fund (IMF) targets according to the findings of a review conducted since the country was awarded a $6 billion IMF loan in July, Mission Chief Ernesto Ramirez Rigo stated in a conference call.
"So, as a summary description I would say that program implementations have been on track for the first review. All the performance criteria for the targets of the first quarter were met or exceeded, in particular those on the external sector, foreign Currency reserves and NDA [net domestic assets], likewise on the fiscal side," Ramirez Rigo stated.
While the mission chief outlined that Pakistan is still suffering from a lack of development spending, particular in the area of infrastructure, the country has made a number of significant gains to improve the overall state of its finances.
"What we have seen so far is a major improvement in the external position of Pakistan that was one of the objectives of the program. A very smooth transition to market-determined exchange rate, it was also a major component of the program. So those are areas where we feel that the program is delivering very good early results," Ramirez Rigo added.
The mission chief stated that Pakistan's overall economic outlook will remain unchanged heading into 2020, although some minor revisions will be made to some trade variables in the deal signed with the IMF. Ramirez Rigo also gave praise to the Pakistani government for their commitment to the program.
In July, Pakistan was awarded a $6 billion loan from the IMF under the Extended Fund Facility program to help sustain economic growth and improve standards of living in the country. The Pakistani government received $1 billion in funds immediately, and the remainder of the sum will be distributed throughout the program, which is expected to last until 2022. Pakistan received the latest installment of $450 million in November.
