Pakistan-IMF loan agreement comes at challenging juncture: spox

The spokesperson of the International Monetary Fund (IMF) Julie Kozack has said that the Stand-By Arrangement (SBA) for Pakistan came at a challenging juncture.

Julie Kozack, in a press briefing on Thursday, the SBA for Pakistan came at a challenging juncture. She clarified that IMF is always ready to work with Pakistan and the government in efforts to restore sustainability and economic stability.

The new loan programme is aimed to stabilise Pakistan’s economy and address the needs of the Pakistani people, she said.

Kozack added that ‘steadfast implementation is critical’ to addressing its large financing needs and supporting the most vulnerable, besides providing a framework for financing from multilateral and bilateral partners.

The Stand-By Arrangement (SBA) for Pakistan 🇵🇰 comes at a challenging juncture. It aims to stabilize the economy & address the needs of the Pakistani people. Steadfast implementation is critical to address its large financing needs & support the most vulnerable. pic.twitter.com/2BfDQxvih2

— Julie Kozack (@IMFSpokesperson) July 13, 2023

In a press briefing on Thursday, IMF spokesperson Julie Kozack said the SBA came at a “challenging juncture”.

The programme, she stated, was aimed at supporting the government’s economic stabilisation plan and policies, with due protection for the most vulnerable, and providing a framework for financing from multilateral and bilateral partners.

The spokesperson stressed that “steadfast policy implementation” was critical in the period ahead. “This will be critical for the success of the programme and, of course, ultimately, for aiding and supporting the people of Pakistan,” she added.

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The IMF spokesperson said that the new loan programme would fulfil Pakistan’s needs for the current balance of payments.

She added that it is a short programme but it provides time for Pakistan to implement policies critical to strengthening its domestic external economic situation, thereby supporting sustainability.

Julie Kozack further stated that Pakistan would require continued reforms to resolve structural challenges over the medium term to underpin the needed economic transformations, strengthen inclusive growth prospects, and create an environment conducive to renewed private capital inflows.

Yesterday, Pakistan received the first tranche of $1.2 billion from the International Monetary Fund (IMF) under the SBA programme.

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The International Monetary Fund (IMF) on Wednesday night approved a $3 billion loan for Pakistan after signing the staff-level agreement last month.

The International Monetary Fund (IMF) had transferred an amount of $1.2 billion to the State Bank of Pakistan, Finance Minister Ishaq Dar confirmed in a televised statement here in Islamabad.

Dar said the remaining $1.8 would be released after two reviews, meaning that there would be two instalments.

Pakistan’s foreign reserves had jumped by $4.2 billion during the last four days, he said – in a reference to $2bn deposit made by Saudi Arabia and another $1bn received from the United Arab Emirates (UAE).

Pakistan is back on the track of development and prosperity, he added.