IMF releases official statement after loan talks with Pakistan

The International Monetary Fund (IMF) has released an official statement following discussions with Pakistan. The statement confirms that Islamabad has formally requested a new loan program from the IMF.

The IMF delegation, led by Mission Chief Nathan Porter, visited Pakistan and held extensive negotiations from May 13 to May 23 to discuss the country’s economic improvements.

The statement highlights that the Pakistani government is making serious efforts to increase revenue and emphasizes the need for fair tax collection from privileged sectors.

The International Monetary Fund (IMF) mission assured Pakistan of its commitment to working together for sustainable economic growth. The statement noted that Pakistan’s economy would stabilize with the support of the Extended Fund Facility (EFF) program.

Pakistan has successfully met the targets set under the Standby Arrangement Agreement, which will support the forthcoming new loan program.

Read more: IMF ‘asks’ Pakistan to deregulate prices of red meat, milk

The statement underscores the necessity of expanding the tax net to ensure economic growth and stability. The IMF calls for appropriate policy and exchange rate measures to control inflation and stresses the critical need for energy sector reforms in Pakistan.

Reducing the cost of energy production is essential, and a stringent monetary policy is required until inflation is under control, the statement said.

The IMF also highlighted the need to improve the performance of state-owned enterprises and indicated that privatization of these corporations is essential for better efficiency.