Julie Kozack, the International Monetary Fund’s (IMF) Director of Strategic Communications, has underscored that the “steadfast implementation” of the nine-month Stand-by Arrangement (SBA) is crucial to Pakistan’s future economic stability.
In her statement, Kozack emphasized that the SBA is intended to assist Pakistan in its immediate efforts to stabilize the economy and address the country’s substantial financing needs. She also mentioned the necessity of supporting the most vulnerable segments of the population.
Kozack added that addressing Pakistan’s structural challenges will likely necessitate continued reforms in the medium term. These reforms are essential to promote inclusive growth, attract private capital inflows, and facilitate necessary economic transformations. She reaffirmed the IMF’s readiness to collaborate with Pakistan and its government to restore economic stability and sustainability.
Earlier this week, the IMF approved a $3 billion bailout package for Pakistan to prevent a default and facilitate the country’s return to the reform path. This approval came after friendly countries stipulated their support with the condition of a deal with the IMF.
Read: IMF Prepares to Evaluate $3 Billion SBA for Crisis-stricken Pakistan
The IMF Executive Board’s approval of the nine-month SBA, equivalent to 111% of Pakistan’s quota, arrives at a challenging economic crossroads for Pakistan. However, the board members criticized Pakistan’s inconsistency in reforms and failure to meet its commitments.
This is the 23rd programme that Pakistan has signed with the IMF. Only one program, conducted from 2013-2016, was fully implemented, albeit with many waivers against key conditions.
