ISLAMABAD/WASHINGTON: Timely and decisive implementation of policies along with resolute financial support from official partners is critical for Pakistan to successfully regain macroeconomic stability, IMF mission chief said in short statement at conclusion of 10-day visit.
Pakistan and the International Monetary Fund (IMF) have agreed to continue talks on a bailout deal, the statement added, implying that an agreement to revive the program through a staff-level agreement may still take some time as Pakistan moves to execute the prior actions.
“Virtual discussions will continue in the coming days,” IMF Pakistan Mission Chief Nathan Porter said in a statement, thanking the authorities for the “constructive discussions”.
The statement issued after the IMF mission, led by Nathan Porter, held discussions during January 31-February 9 to finalize the action plan under the ninth review of the IMF bailout program.
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“The IMF team welcomes the Prime Minister’s commitment to implement policies needed to safeguard macroeconomic stability and thanks the authorities for the constructive discussions,” Porter was quoted as saying in the statement.
Porter noted that “considerable progress” was made during the talks with Pakistani officials on “policy measures to address domestic and external imbalances”.
“Key priorities include strengthening the fiscal position with permanent revenue measures and reduction in untargeted subsidies, while scaling up social protection to help the most vulnerable and those affected by the floods; allowing the exchange rate to be market determined to gradually eliminate the foreign exchange shortage; and enhancing energy provision by preventing further accumulation of circular debt and ensuring the viability of the energy sector”, the IMF mission chief said.
The Washington-based lender made its statement after it was widely reported by local media and a global news agency that the IMF and Pakistan had agreed to revive the bailout program. This agreement is crucial for the economy as Pakistan’s central bank currently holds less than $3 billion in foreign exchange reserves.
However, the IMF, while issuing its statement, also clarified that end-of-mission press releases include statements of staff teams that convey preliminary findings after a visit to a country.
