IMF package meant for reforms to stabilize economy: IMF official

ISLAMABAD: International Monetary Fund (IMF) has said that the bailout for Pakistan is meant for reforms to stabilize the economy, ARY News reported on Tuesday.

IMF resident representative in Islamabad Teresa Daban Sanchez talking to newsmen here said that the IMF programme will ensure stability of growth rate in Pakistan.

The reforms under the programme will extend stability to the economy.

The lending institution stresses for increase in tax recoveries, autonomy of the central bank and reining in the inflation rate, IMF official said.

Another characteristic of the bailout package is ensuring that market forces determine the value of the currency.

Teresa Daban said that Pakistan will receive six billion dollars under the IMF’s extended fund facility (EFF) adding that the first tranche of the package of one billion dollars already released to Pakistan.

IMF resident representative said the first review of the performance of the economy will be completed before December after which second installment of the package will be released.

She said Pakistan had shared full details of CPEC loans with the IMF, which was mostly private sector investment in energy and infrastructure.

The IMF official said energy projects had helped the country deal with acute shortages of power and this was a positive aspect. She said the debt sustainability analysis showed that CPEC loans were manageable, but the country’s overall debt situation was not sustainable.

Responding to a question, Ms Sanchez said fiscal consolidation and revenue mobilisation, market-based exchange rate and social sector protection were three basic pillars of the new IMF programme.