Resolving Pakistan's structural challenges require continued reforms: IMF Director

WASHINGTON (92 News) - IMF Director Communications Julie Kozack has said that resolving Pakistan's structural challenges require continued reforms over the medium term to underpin the needed economic transformations, to strengthen inclusive growth prospects and to create an environment conducive to renewed private capital inflows.

Responding to a question about the US3 billion programme during a press conference on Thursday, she said that the IMF Executive Board had approved a 9-month standby arrangement for Pakistan in the amount of US$3 billion. "And this program is aimed at supporting the authority's economic stabilization plan and economic stabilization program. The immediate disbursement reached about US$1.2 billion. The new program will anchor the authorities’ immediate efforts to stabilize the economy.

"With due protection for the most vulnerable and provide a framework for financing from multilateral and bilateral partners to support Pakistan's the Pakistan government's policies. Steadfast policy implementation is critical in the period ahead. This will be critical for success of the program and, of course, ultimately, for to aid and support the people of Pakistan."

To another question about the standby agreement, Julie Kozack said that the standby [arrangement] was aimed at supporting the authority's immediate effort to stabilize the economy and to ensure that the current balance of payments need is filled. "While it is relatively a relatively short program, it provides time for Pakistan to implement policies critical to strengthening it is domestic-external economic situation, thereby supporting sustainability. And of course, we at the IMF, we always stand ready to work with Pakistan and the Pakistani government on these efforts to restore sustainability and an economic stability," she added.