The IMF is ready to “engage” with Pakistan in the new rescue package

• The IMF is ready to join discussions on the program, says spox.
• The IMF Executive Board meeting will take place later this month.
• The Fund notes an improvement in the “economic and financial” situation.

WASHINGTON: As the government seeks another bailout from the International Monetary Fund (IMF), the global lender has said it is ready to “engage” with Pakistan in the “coming months” to help the country resolve its “fiscal and external stability”. challenges”.

“The authorities have expressed interest in an IMF-supported successor program aimed at solving Pakistan’s fiscal and external stability challenges and laying the foundations for inclusive growth. And, of course, we stand ready to engage in discussions about the program in the coming months,” IMF Communications Director Julie Kozak said at a news conference on Tuesday.

Kozack spoke about the new bailout in response to a question raised about the Standby Arrangement (SBA) and whether Pakistan was out of the woods financially.

The IMF communications director shared that the lender’s Executive Board meeting will be held at the end of this month to approve the disbursement of the remaining $1.1 billion SBA following the staff-level agreement between Pakistan and the IMF.

“The staff-level agreement recognizes the strong implementation of the program by the State Bank of Pakistan and the caretaker government in recent months, as well as the new government’s intentions for continued policy and reform efforts to move Pakistan from stabilization to a strong and sustainable recovery”. said Kozak.

The IMF official noted that there has been an improvement in Pakistan’s “economic and financial” situation since the completion of the first SBA review.

“Growth and confidence continue to recover,” Kozack said. He added that the IMF will announce growth forecasts in the coming months as part of the World Economic Outlook.

On March 20, Pakistan and the IMF reached a staff-level agreement on the second and final review under the US$3 billion SBA, paving the way for the lender to release the final tranche.

A day after the deal was finalized, Prime Minister Shehbaz Sharif signaled that the new IMF program was likely to continue for three years.

“The new tranche of the loan is likely to be received from the IMF in a few days, however, we will need another program,” he had said during his speech at a meeting of the top committee of the Special Investment Facilitation Council (SIFC), which was attended by politicians- military men. leadership on March 21.

Following the prime minister’s directives, Finance Minister Muhammad Aurangzeb last week said a meeting to discuss the new loan program with the IMF was scheduled for April 14 and 15 in Washington.

Speaking to the media at the Pakistan Stock Exchange (PSX) in Karachi, the minister said that the new features of the program will be discussed at the forum, while detailed talks will be held later in Pakistan.