Director of Communications at the International Monetary Fund (IMF) Julie Kozek expressed her anticipation for constructive collaboration with Pakistan's new government to ensure macroeconomic stability in the country.
In a recent media briefing, Kozek refrained from delving into the intricacies of Pakistan's current political landscape but highlighted the pivotal approval by the IMF Executive Board on January 11.
This approval marked a significant milestone as it unlocked $1.9 billion under the standby arrangement to support Pakistan's economic endeavors.
Stressing the international money lender's commitment to safeguarding vulnerable sectors, Kozek underscored the program's dual focus on economic stabilization and protecting those most susceptible to financial shocks.
During the interim caretaker government period, Kozek commended Pakistani authorities for their steadfast efforts in maintaining economic stability. Notably, measures were taken to curb inflation and bolster the exchange rate through stringent monetary policies.
Pakistan to seek $6 billion IMF loan
According to a report by Bloomberg report, Pakistan is gearing up to secure a substantial loan of at least $6 billion from the International Monetary Fund (IMF) to alleviate the burden of looming debt repayments
With debt obligations looming large this year, the South Asian nation aims to negotiate an Extended Fund Facility with the IMF, as revealed by a Pakistani official. Talks with the global lender are expected to commence in the coming months, potentially as early as March or April.
The urgency for financial assistance stems from the impending expiration of a short-term IMF bailout program, which helped Pakistan stave off default last summer. However, with the program set to conclude next month, the onus falls on the incoming government to navigate a sustainable, long-term arrangement to stabilize the $350-billion economy.
Prior to the previous bailout, Pakistan had to enact a series of stringent measures mandated by the IMF, including budget revisions, a hike in benchmark interest rates, and adjustments to electricity and natural gas prices. These measures were aimed at addressing economic imbalances and ensuring fiscal discipline.
The report also highlighted that the IMF has yet to issue an official response to inquiries regarding the Bloomberg report, while attempts to reach Pakistan's finance ministry for comment were unsuccessful.
