The International Monetary Fund (IMF) is poised to conduct a mission for the second review of the Stand-by Agreement soon after the formation of a new cabinet, according to Julie Kozack, IMF’s Communication Director, during a press briefing.
Kozack mentioned that on January 11, the IMF Executive Board approved the first review of the Stand-by Arrangement with Pakistan, resulting in total disbursements of around $1.9 million under the Stand-by. The Stand-by Agreement aims to support the government’s efforts to stabilize the economy while prioritizing the protection of vulnerable groups.
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She further highlighted that during the caretaker government’s tenure, economic stability was maintained through adherence to fiscal targets, safeguarding social safety nets, maintaining a tight monetary policy stance to manage inflation, and bolstering foreign exchange reserves. Additionally, timely adjustments in tariffs were made to enhance the energy sector’s sustainability.
Kozack emphasized, “The IMF is prepared to conduct a mission for the second review of the Stand-by Agreement soon after the formation of a new cabinet. Our current focus is on completing the existing Stand-by program, slated to conclude in April 2024. We anticipate collaborating with the new government on policies to ensure macroeconomic stability.”
Responding to inquiries regarding political instability, Kozack refrained from commenting on politics but reiterated the IMF’s readiness to engage with the new government post-cabinet formation to ensure macroeconomic stability for the benefit of the Pakistani populace.
