The International Monetary Fund (IMF) has said that the $3 billion Standby-By Agreement (SBA) will shoulder Pakistan government’s urgent efforts to stabilize the economy, reported 24NewsHD TV channel.

Addressing a news briefing on Friday, Julie Kozack, the IMF’s Director of Strategic Communications and spokesperson, said the Fund Executive Board had approved $3 billion loan package and 1.2 billion dollar of it has been released immediately to Pakistan.

The IMF director declared that the programme would support Government of Pakistan’s efforts to stabilise the economy.

Julie Kozack said a stable policy implementation was crucial for Pakistan in the coming period, adding loan programme would be important to help and support the people of Pakistan.

She said Pakistan was facing various challenges, hence it would need uninterrupted reforms and the IMF was always there to work with Pakistan.

The Stand-By Arrangement (SBA) for Pakistan 🇵🇰 comes at a challenging juncture. It aims to stabilize the economy & address the needs of the Pakistani people. Steadfast implementation is critical to address its large financing needs & support the most vulnerable. pic.twitter.com/2BfDQxvih2

— Julie Kozack, IMF (@IMFSpokesperson) July 13, 2023

Julie Kozack said the SBA came at a “challenging juncture”. The programme, she stated, was aimed at supporting the government’s economic stabilisation plan and policies, with due protection for the most vulnerable, and providing a framework for financing from multilateral and bilateral partners.

She stressed that “steadfast policy implementation” was critical in the period ahead. “This will be critical for the success of the programme and, of course, ultimately, for aiding and supporting the people of Pakistan,” she added.

Kozack went on to say that programme, although short, would ensure that Pakistan’s current balance of payments need was fulfilled. “While it is a relatively short programme, it provides time for Pakistan to implement policies critical to strengthening its domestic external economic situation, thereby supporting sustainability.

“Of course, resolving Pakistan’s structural challenges will likely 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,” she stated.

The spokesperson also assured that the IMF was always standing ready to work with the country and the government in efforts to restore sustainability and economic stability.

 

Reporter Waqas Azeem