On Tuesday, pakistan PM Shehbaz Sharif, the Prime Minister, announced the International Monetary Fund (IMF) would send the final $1.1 billion chunk. This fund is under a stand-by agreement (SBA). He believes this will support our economy better.
Just this Monday, the Fund gave an immediate green light for around $1.1bn to go to Pakistan. In Washington, their executive board huddled together, wrapped up their second review under the SBA mark. Now, the payments made under this deal have stacked up to close to $3 billion.
Every board member, except India who held back, voted to release the last payment. Following the finish of the second and final evaluation, the IMF published a statement. They praised the authority’s steadfast policy measures under the SBA. Because of this, they’ve witnessed the firming up of the economy and the slow, but sure, resurgence of economic growth.
“For shifting Pakistan from stability to a robust, enduring growth, it’s critical that the authorities persist in their policy and reform measures, especially sticking to financial goals,” the statement conveyed.
The Fund also nudged Pakistan saying there’s need to shield the weak while carrying out these reforms. The IMF stressed on sticking to a market-driven exchange rate to manage outside impacts. They also highlighted the broadening of structural reforms to back robust and inclusive growth.
The IMF’s green light followed a meeting between PM Shehbaz and IMF MD Kristalina Georgieva. They met at the World Economic Forum’s special session in Riyadh. The PM ensured her of the government’s full dedication to righting Pakistan’s economy.
“PM Shehbaz’s words today clarify that the final cash injection will solidify Pakistan’s economic position,” according to public broadcast outlet, Radio Pakistan.
The Agreement with the IMF for the SBA
He said, “was key. In his previous government role, it stopped Pakistan from failing over 16 months.”
“Hard choices made for Pakistan’s economic safety are now seeing good outcomes, showing us economic steadiness,” he shared. He further said, the count’s leaders are giving it their all to enhance the economy and usher progress for the nation.
The leader stated that securing a loan was not a victory. He strongly believed the true win would come when Pakistan became loan-free. He shared an optimistic vision that the country could escape its debt cycle and embrace a prosperous future if it stayed its course. PM Shehbaz extended gratitude to the Fund for their support during challenging periods.
In the previous year, the IMF Executive Board gave the thumbs up to a nine-month SBA deal with Pakistan. It was meant to help steady their economy. This approval resulted in an instant allocation of $1.2bn. The remaining funds were set to be rolled out over the timeline of the program requiring two quarterly evaluations.
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Finance Chief Muhammad Aurangzeb states Pakistan is now hoping for a longer, more extensive monetary aid package from the IMF. If asked, the Fund has agreed to help create a fresh economic plan for Pakistan.