Pakistan will deliver on its commitments, Georgieva assured board.
Pak-IMF loan agreement comes at challenging juncture: spox
Islamabad_Prime Minister Muhammad Shehbaz Sharif expressed his gratitude to Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, during a telephonic conversation on Friday.
During the conversation, he thanked her for the support and assistance in finalising the recently concluded Stand-by Agreement (SBA), which secured a $3 billion loan for Pakistan.
the Prime Minister also praised the leadership and professionalism of the IMF Managing Director and acknowledged her empathy towards the underprivileged. He recognised her invaluable support in facilitating the agreement.
In response, the IMF MD commended Sharif for presenting a convincing case, despite initial skepticism from the IMF Board due to past trust issues.
She assured the Board of Pakistan’s commitment to fulfilling the agreement’s conditions based on her personal interaction with the Prime Minister and his determination to deliver. She emphasised the strong partnership and mutual trust between both parties and reaffirmed the IMF’s commitment to assisting Pakistan.
PM Sharif expressed his appreciation for the positive approach and frank comments made by the IMF MD during their interaction in Paris. He highlighted the successful outcome of their hard work, resulting in the signing of the Standby Arrangement.
Furthermore, the premier assured that he would not tolerate any violations of the agreement and stated that the current government would fulfill its obligations until August, after which an interim government would take over. He expressed confidence that if re-elected, his government would work with the IMF and development partners to revitalize the economy.
As a gesture of respect and appreciation, he mentioned his intention to send a gift of Pakistani mangoes to the IMF Managing Director, highlighting the high quality of the country’s produce.
Earlier,
The spokesperson of the International Monetary Fund (IMF) Julie Kozack has said that the Stand-By Arrangement (SBA) for Pakistan came at a challenging juncture.
Julie Kozack, in a press briefing on Thursday, the SBA for Pakistan came at a challenging juncture. She clarified that IMF is always ready to work with Pakistan and the government in efforts to restore sustainability and economic stability.
The new loan programme is aimed to stabilise Pakistan’s economy and address the needs of the Pakistani people, she said.
Kozack added that ‘steadfast implementation is critical’ to addressing its large financing needs and supporting the most vulnerable, besides providing a framework for financing from multilateral and bilateral partners.
In a press briefing on Thursday, IMF spokesperson 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.
The spokesperson 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.
The IMF spokesperson said that the new loan programme would fulfil Pakistan’s needs for the current balance of payments.
She added that it is a short programme but it provides time for Pakistan to implement policies critical to strengthening its domestic external economic situation, thereby supporting sustainability.
Julie Kozack further stated that Pakistan would require continued reforms to resolve structural challenges over the medium term to underpin the needed economic transformations, strengthen inclusive growth prospects, and create an environment conducive to renewed private capital inflows.
Yesterday, Pakistan received the first tranche of $1.2 billion from the International Monetary Fund (IMF) under the SBA programme.
The International Monetary Fund (IMF) on Wednesday night approved a $3 billion loan for Pakistan after signing the staff-level agreement last month.
The International Monetary Fund (IMF) had transferred an amount of $1.2 billion to the State Bank of Pakistan, Finance Minister Ishaq Dar confirmed in a televised statement here in Islamabad.
Dar said the remaining $1.8 would be released after two reviews, meaning that there would be two instalments.
Pakistan’s foreign reserves had jumped by $4.2 billion during the last four days, he said – in a reference to $2bn deposit made by Saudi Arabia and another $1bn received from the United Arab Emirates (UAE).
Pakistan is back on the track of development and prosperity, he added.
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