WASHINGTON (our report):- Steadfast policy implementation is critical for Pakistan in the period ahead, International Monetary Fund (IMF) spokesperson Julie Kozack said Thursday, after the Fund approved a bailout for the cash-starved.
“This will be critical for success of the programme and, of course, ultimately, for to aid and support the people of Pakistan,” the IMF spokesperson’s said in a press conference.
So, let me step back and give you the overview of where we stand with Pakistan. So just on July 12th, our Executive Board approved a 9-month standby arrangement for Pakistan in the amount of 3 billion .US. dollars. And this program is aimed at supporting the authority’s economic stabilization plan and economic stabilization program. The immediate disbursement reached about $1.2 billion.
The new program will anchor the authorities’ immediate efforts to stabilize the economy. With due protection for the most vulnerable and provide a framework for financing from multilateral and bilateral partners to support Pakistan’s the Pakistan government’s policies. Steadfast policy implementation is critical in the period ahead. This will be critical for success of the program and, of course, ultimately, for to aid and support the people of Pakistan.
Now, with respect to the question about the standby. Right? Why do we have a relatively short program? The standby [arrangement] is aimed at supporting the authority’s immediate effort to stabilize the economy and to ensure that the current balance of payments need is filled. While it is relatively a relatively short program, it provides time for Pakistan to implement policies critical to strengthening it is domestic external economic situation, thereby supporting sustainability.
Of course, resolving Pakistan’s structural challenges will likely require continued reforms over the medium term to underpin the needed economic transformations, to strengthen inclusive growth prospects, and to create an environment conducive to renewed private capital inflows. And of course, we at the IMF, we always stand ready to work with Pakistan and the Pakistani government on these efforts to restore sustainability and an economic stability.