Pakistan and IMF reach staff-level agreement
ISLAMABAD/WASHINGTON (MNP) – The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement on the second and final review under Stand-By Arrangement, subject to the IMF Executive Board’s approval.
A statement issued by the IMF says Pakistan will have access to $1.1 billion after the final approval, which is expected next month. “Given the timing of the Second Review mission, immediately following the formation of the new cabinet, we expect the review to be considered by the IMF’s Board in late April.”
The IMF mentions that the agreement recognises the strong programme implementation by the State Bank of Pakistan (SBP) and the caretaker government in recent months, as well as the new government’s intentions for ongoing policy and reform efforts to move Pakistan from stabilization to a strong and sustainable recovery.
In his comments, IMF Pakistan Mission Chief Nathan Porter said Pakistan’s economic and financial position had improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of inflows from multilateral and bilateral partners.
But at the same time, Porter warned about inflation exceeding the target and the modest nature of economic growth as well as stressing the need for a swift reform process.
