IMF ready to discuss with Pakistan next programme in ‘coming months’

WASHINGTON: The International Monetary Fund has said that its executive board meeting is expected to take place later this month, which will likely consider Pakistan’s second and final review under the Stand-By Arrangement.

The Fund also acknowledged that Pakistani authorities have expressed interest in a successor IMF-supported programme with “the aim of resolving the country’s fiscal and external stability challenges and laying the foundation for inclusive growth.” The IMF communication director Julie Kozak said, “Of course, we stand ready to engage in programme discussions in the coming months.”

The Fund’s staff and the Pakistani authorities reached a staff-level agreement on March 19, and it’s now subject to approval by the executive board. Upon approval by the Board, Pakistan will have access to around 1.1 billion dollars, bringing total disbursement under the SBA to about $3 billion. “We do expect the board meeting to take place in late April,” Julie Kozak said during the press briefing here on Thursday.

Responding to a question about Pakistan’s economy and the SBA status, she said that the staff-level agreement recognizes the strong programme implementation by the State Bank of Pakistan and the caretaker government in recent months, as well as the new government’s intentions for ongoing policy and reform efforts to move Pakistan from stabilization to a strong and sustainable recovery.

“Pakistan’s economic and financial improvement has improved in the months since the first review was completed. Growth and confidence are continuing to recover,” she said. She told the media that the IMF will release the latest growth forecasts for Pakistan as part of its World Economic Outlook in a couple of weeks.