Spokesperson says the Fund will discuss Pakistan’s case in board meeting on Sept 25. PM Shehbaz Sharif appreciates friendly nations for helping country meet IMF requirements.
ISLAMABAD - The International Monetary Fund (IMF) executive board meeting is scheduled to take place on September 25 to discuss a $7 billion loan deal agreed with Pakistan this year, an IMF spokesperson announced on Thursday. Prime Minister Shehbaz Sharif appreciated friendly countries for their support in meeting the lender’s requirements. Addressing a press briefing, IMF’s spokesperson Julie Kozack said that the Fund had reached a staff-level agreement with Pakistan on the EFF in July. “We are very happy that we can say now that the board meeting is scheduled to take place on September 25,” she said.
“This is following Pakistan obtaining the necessary financing assurances from its development partners. The new EFF arrangement… follows the successful implementation of the 2023 nine-month standby arrangement.”
She added that consistent policymaking has supported economic stability in Pakistan, most notably a resumption of growth, significant disinflation, and a significant increase in the country’s international reserves. Asked if Pakistan has received those assurances, she responded, “Yes.”
The prime minister also thanked friendly countries for once again overwhelming supporting Pakistan. He stressed on the need to rid the country of the loans and put it on its own feet. Sharif said on Thursday, while addressing a federal cabinet meeting, the government is actively working on reforms in the power sector and Federal Board of Revenue.
Responding to the development, Finance Minister Muhammad Aurangzeb expressed gratitude to those involved in the negotiations. In a statement from the finance ministry, Aurangzeb said, “By the grace of God, all matters with the IMF have been settled amicably.”
Pakistan’s last $3 billion IMF program helped avert a sovereign default last year, amid a decline in foreign exchange reserves to critical levels, currency devaluation and record inflation.
“For now, it would be fine to say that the finance minister, other government institutions and our ambassador in China have worked hard together for this,” PM said.
Sharif said Pakistan’s economy would greatly benefit if the monetary policy rate also reached single digits like the inflation rate, highlighting that the dialogue with the IMF was moving ahead in a “good manner.”
PM Sharif said Pakistan will take decisions regarding the growth rate once the program is finalised.
Pakistan has been struggling with boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958. The latest economic crisis has been the most prolonged and has seen the highest-ever levels of inflation, pushing the country to the brink of a sovereign default last summer before an IMF bailout.
The conditions of the fresh IMF bailout have become tougher such as higher taxes on farm incomes and electricity prices. The bailout is aimed at cementing stability and inclusive growth in the crisis-plagued South Asian country.
Addressing the Federal Cabinet meeting, held in Islamabad, Shehbaz Sharif also said the policy rate has now dropped from 19.5 percent to 17.5 percent, which is welcoming. He said economy is gradually and step by step improving. Regarding talks with International Monetary Fund, he said negotiations with the IMF are progressing positively.
About Israeli unabated barbarism and atrocities against innocent Palestinians, the Prime Minister once against strongly condemned the massacre of Palestinians and termed it as black chapter of the human history. The prime minister expressed dismay over the silence of international conscience on the Israeli aggression saying that the international community’s conscience should wake-up to end these atrocities.
We are very happy that we can say now that the board meeting is taking place on Sep 25: Julie Kozack
