IMF Issues Official Statement Following Loan Negotiations with Pakistan
Following discussions with Pakistan, the International Monetary Fund (IMF) has issued an official statement confirming Islamabad’s formal request for a new loan program. The IMF delegation, led by Mission Chief Nathan Porter, engaged in extensive negotiations from May 13 to May 23 to assess the country’s economic progress.
The statement underscores the Pakistani government’s earnest endeavors to boost revenue generation and stresses the importance of equitable tax collection, particularly from privileged sectors. The IMF mission reaffirmed its commitment to collaborating with Pakistan towards sustainable economic growth, noting that the Extended Fund Facility (EFF) program would aid in stabilizing the country’s economy.
Acknowledging Pakistan’s successful attainment of targets outlined in the Standby Arrangement Agreement, the statement indicates that these achievements will bolster the upcoming new loan program. Emphasizing the imperative of broadening the tax base for economic growth and stability, the IMF calls for the implementation of appropriate policy and exchange rate measures to curb inflation. Additionally, urgent reforms in the energy sector are deemed crucial.
The statement underscores the necessity of reducing energy production costs and advocates for a stringent monetary policy until inflation is effectively managed. Furthermore, the IMF highlights the importance of enhancing the performance of state-owned enterprises, suggesting that privatization of these entities is pivotal for enhancing efficiency.
