IMF needs external financing assurances to Pakistan for taking next step

IMF needs external financing assurances to Pakistan for taking next step

International Monetary Fund (IMF) is needed assurances of external financing to Pakistan as the required huge external financing.

“We do need to ensure that we have those financing assurances in place in order for us to be able to take the next step with Pakistan,” Julie Kozack, director of communications at the IMF, said on Thursday.

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She said Pakistan’s economy faces multiple challenges including from slowing growth, high inflation and large financing needs. And of course, this is all coming on the back of devastating floods.

Discussions are ongoing between IMF staff and the Pakistani authorities toward a Staff Level Agreement on policies to complete the ninth review of Pakistan’s extended Fund Facility, the authorities are committed to implementing the necessary reforms.

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“They’ve started to implement decisive actions to stabilize the economy and restore confidence. While providing space to accommodate the needs related to the floods, including through an increase in social assistance through the Benazir Income Support Program, which is aimed at the most vulnerable.”

Timely financial assistance from external partners will be critical to support the authorities’ policy efforts and ensure the successful completion of the review.

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She further stated that there is sufficient financing to support the authorities is the paramount priority.

A Staff Level Agreement will follow once the few remaining points are closed. I can also say that financing assurances, right, what we’re looking for here are a standard feature of all IMF programs.

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Aside from support provided by the IMF, Pakistan’s, EFF supported program receives financing from other multilateral institutions, including the World Bank, the ADB, and the AIIB and bilateral partners, notably China, Saudi Arabia, and the UAE.