IMF Says Pakistan Needs More Reforms for Economic Transformation

Resolving Pakistan’s structural challenges will likely require continued reforms over the medium term to underpin the needed economic transformations, strengthen inclusive growth prospects, and create an environment conducive to renewed private capital inflows. This was stated by IMF Director Communication Julie Kozack during a press briefing. She stated 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. The immediate disbursement reached about 1.2 billion US dollars. 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 the Pakistan government’s policies. Steadfast policy implementation is critical in the period ahead. This will be critical for the success of the program and, of course, ultimately, for aiding and supporting the people of Pakistan,” she added. Replying to a question, she stated, “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 needed is filled. While it is a relatively short program, it provides time for Pakistan to implement policies critical to strengthening it in the domestic external economic situation, thereby supporting sustainability”. She further stated, “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, always stand ready to work with Pakistan and the Pakistani government on these efforts to restore sustainability and economic stability”.