President Zardari lauds IMF’s role in Pakistan’s economic stability

ISLAMABAD: President Asif Ali Zardari on Friday said that the IMF program had played a supportive role in stabilizing Pakistan’s economy and would also contribute to fostering economic growth in the country.

The president, in a meeting with a delegation of the International Monetary Fund (IMF) led by Director of the Middle East & Central Asia Department, Jihad Azour, highlighted the IMF’s positive role in promoting economic development in developing nations.

Discussing Pakistan’s current economic situation and the ongoing IMF program, he also acknowledged and appreciated the IMF’s contribution to Pakistan’s economic progress.

The delegation members expressed satisfaction over Pakistan’s efforts for economic reforms and implementation of the IMF program, which they observed was progressing in the right direction.

The delegation members emphasized that the program had assisted in reducing inflation and fiscal deficit and strengthening Pakistan’s foreign exchange reserves.

President Zardari thanked the IMF for its continued support and cooperation with Pakistan, and also appreciated the finance ministry for its efforts to improve the national economy.

The meeting was also attended by Federal Finance Minister Senator Muhammad Aurangzeb, Senator Saleem Mandviwalla, and senior government officials.

Earlier, International Monetary Fund (IMF) Director of Communications, Julie Kozack, firmly responded to an Indian journalist’s provocative question regarding funding for Pakistan during the press briefing

During a press briefing, Indian journalist had asked Kozack whether Pakistan could use IMF funds to support cross-border terrorism.

Julie Kozack categorically rejected the notion, stating that the IMF loan program is strictly for supporting Pakistan’s foreign exchange reserves and not for budgetary support or any government expenditure.

She clarified that the IMF loan disbursement is meant to stabilize Pakistan’s balance of payments and is deposited directly into the State Bank of Pakistan’s reserves, not the federal treasury.

Julie Kozack further said that the IMF’s conditions prohibit the Government of Pakistan from borrowing from the central bank, and current borrowing from the State Bank stands at zero.