IMF prepared to assist Pakistan in enhancing its economic circumstances

The International Monetary Fund is prepared to assist Pakistan, which is severely short on cash, with important reforms that would help the nation’s economy stabilize and develop.

On the fringes of the annual Spring Meetings of the IMF and the World Bank, Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, told reporters that Pakistan has currently expressed interest in a new program designed to help the country address some of the major challenges.

According to him, Pakistan has reached a lot of significant benchmarks in terms of economic stability thanks to the present program, which was started 10 months ago.

The IMF official hoped that the latest assessment, which was successful and would be presented to the board, would bring an end to a program that assisted Pakistan in addressing severe economic imbalances and maintaining its economic stability.

“Pakistan was also able to strengthen its buffers thanks to such actions. According to Azour, the authorities are now interested in implementing a new program to assist Pakistan in addressing some of the major issues.

The first is to maintain macroeconomic stability, which would need carrying on with the fiscal side of things in order to lower the amount of budget deficits and fortify the fiscal position by enhancing the revenue situation, which was previously one of the primary obstacles, according to the IMF official.

Raising income will enable the government the space to handle the debt issue while simultaneously having more funds available for social assistance.

The energy sector’s reform is the second pillar.

“This is a priority that has been there for some time, but it’s still an important reform dimension for Pakistan,” he said.

“The third is to boost this economy’s growth potential. Pakistan’s economy is sizable and has a lot of potential. Pakistan will benefit by leveling the playing field, enhancing the economic climate, and giving the private sector greater room both inside and beyond the country. The Fund is prepared to provide help for these fundamental foundations, which Pakistan would need to better its circumstances, according to Azour.

Azour claims that the reform package now matters more than the program’s overall length. The response of the markets was favorable.

“We witnessed more inflows; the central bank’s reserves were replenished, and growth prospects have even brightened. Thus, in order to enable Pakistan to realize its full potential for prosperity, I believe that what is crucial at this point is to quicken the reforms and intensify the structural reforms,” he said.

“Yes, we have run a number of programs, but the Fund is still prepared to help when the government requests it since the goals remain the same. Additionally, I believe that Pakistan’s bilateral allies are eager for the initiative to provide Pakistan with more financial help,” Azour said.

Muhammad Aurangzeb, the finance minister of Pakistan, is now in the US capital attending and conversing with IMF representatives.

Pakistan has been dealing with enormous security and economic issues.

The international team of the Washington-based IMF and the Pakistani government came to a staff-level agreement last week over the second and final assessment of Pakistan’s stabilization program, which is backed by the global lender’s USD 3 billion standby arrangement that was authorized in July of last year.