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Wednesday, May 22, 2024

IMF Releases Final Tranche, Pakistan Eyes Economic Stability

Pakistan receives final IMF tranche, signaling success in economic reform programme, as Prime Minister Shehbaz Sharif emphasizes stability and future collaboration with IMF for sustainable growth.

The State Bank of Pakistan (SBP) announced on Tuesday that Pakistan had received the final tranche of $1.1 billion from the International Monetary Fund (IMF) under the Stand-By Arrangement (SBA).

This disbursement, part of the $3 billion SBA, reflects the successful completion of Pakistan’s economic reform programme, crucial in averting default on external liabilities. Prime Minister Shehbaz hailed the achievement, emphasizing the importance of the SBA in stabilizing Pakistan’s economy.

Economic Reform and Stability

Prime Minister Shehbaz Sharif’s recent discussions with IMF Managing Director Kristalina Georgieva underscore Pakistan’s commitment to economic reform and stability. During their meeting at the World Economic Forum Special Meeting in Saudi Arabia, PM Shehbaz reiterated his government’s dedication to structural reforms, fiscal discipline, and prudent policies aimed at sustaining economic growth. This dialogue sets the stage for Pakistan’s pursuit of a larger and longer Extended Fund Facility (EFF) to bolster macroeconomic stability.

Future Engagement with IMF

Pakistan’s engagement with the IMF reflects a broader strategy to navigate economic challenges and chart a path towards recovery. The IMF’s emphasis on continued policy efforts, fiscal discipline, and protection of vulnerable populations underscores the complexities of Pakistan’s economic landscape.

Read More: Finance Ministry Talks GDP and Inflation

Finance Minister Muhammad Aurangzeb’s assertion regarding Pakistan’s interest in a “longer and larger” economic bailout package signals a proactive approach towards addressing economic vulnerabilities and fostering sustainable growth. As Pakistan seeks to break free from the debt cycle and achieve economic prosperity, its collaboration with the IMF remains pivotal in shaping its future economic trajectory.

This comprehensive engagement with the IMF reflects Pakistan’s multifaceted efforts to address economic challenges, pursue structural reforms, and promote sustainable growth. As the country embarks on its journey towards economic stability, the IMF’s support and collaboration serve as critical pillars in achieving long-term prosperity and resilience.