Left Menu
Development News Edition

IMF, Pakistan reach agreement on first review under the extended agreement

IMF, Pakistan reach agreement on first review under the extended agreement
Image Credit: ANI

The International Monetary Fund (IMF) has reached an accord with Pakistan to complete the first review under the extended agreement that will allow significant funding to the cash-strapped country from bilateral and multilateral partners, the global financial body said on Friday. An IMF mission was in Pakistan from October 28 to November 8 to review the cash-strapped country's quarterly performance under its USD 6 billion bailout package, which was finalized this year.

Completion of the review under the Extended Fund Facility (EFF) will enable disbursement of USD 450 million to Pakistan and will help unlock significant funding from bilateral and multilateral partners, the IMF said. "The Pakistani authorities and IMF staff have reached a staff-level agreement on policies and reforms needed to complete the first review under the EFF (Extended Fund Facility)," Ernesto Ramirez Rigo, who led the IMF mission to Islamabad, said.

The IMF in July had approved a USD 6 billion EFF loan over a period of three years for Pakistan, aimed at returning sustainable growth to the country's fragile economy and improve the standards of living. Noting that all performance criteria were met with comfortable margins and progress continues towards meeting all structural benchmarks, the IMF said the Pakistan government's policies have started to bear fruit, helping to reverse the buildup of vulnerabilities and restore economic stability.

The external and fiscal deficits are narrowing, inflation is expected to decline, and growth, although slow, remains positive. Sustaining sound policies and advancing structural reforms remain key priorities to enhance resilience and pave the way for stronger and sustainable growth, it said. "Despite a difficult environment, program implementation has been good, and all performance criteria for end-September were met with comfortable margins. Work continues towards completing the remaining structural benchmarks for end-September," Rigo said.

"Significant progress has been made in improving the AML/CFT framework, although additional work is needed before March 2020. International partners remain committed to supporting the authorities' reform efforts, providing the necessary financing assurances," said the top IMF official. On the macroeconomic front, signs that economic stability is gradually taking hold are steadily emerging.

The external position is strengthening, underpinned by an orderly transition to a flexible, market-determined exchange rate by the State Bank of Pakistan (SBP) and a higher-than-expected increase in SBP's net international reserves, he said. Budgetary revenue collections are growing on the back of efforts on tax administration and policy changes, and despite the ongoing compression in import-related taxes, he added.

Inflation pressures are expected to recede soon, reflecting an appropriate monetary stance. Importantly, measures to strengthen the social safety net are being implemented, and development spending is being prioritized. "The near-term macroeconomic outlook is broadly unchanged from the time of the program approval, with gradually strengthening activity and average inflation expected to decelerate to 11.8 percent in FY2020. However, domestic and international risks remain and structural economic challenges persist," Rigo said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



JNU Administration's 100-meter challenge before JNUSU

For the first time in its history, Jawaharlal Nehru University JNU Administration is seeking permanent deployment of local police to keep protesting students at 100 meters away from the Administrative Block. It would be interesting to see h...

Sentiment Analysis of Twitter users during COP25: Governments losing trust on Climate Action

Sentiment analysis of Twitter users during COP25 in Madrid, being held from December 2-13, shows widespread fear on climate change due to global warming but almost no trust on governments in meeting the emission targets. In the analysis the...

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....


Latest News

Amul hikes milk rates by Rs 2 per litre with effect from Sunday

The Gujarat Cooperative Milk Marketing Federation GCMMF, which markets dairy products under the brand name of Amul, on Saturday decided to hike the milk prices by Rs 2 per litre being sold in Ahmedabad and Saurashtra markets of Gujarat, Del...

Indian delegation leaves for Aus for consumer protection project

A high-level delegation led by Minister of State for Consumer Affairs, Food and Public Distribution Raosaheb Patil Danve on Saturday left for Australia in pursuance of a collaborative project on consumer protection. The delegation will take...

Police drag environmental protesters from hall of Amsterdam airport

Dutch military police began forcibly removing a group of environmental protesters from the main hall of Amsterdams Schiphol airport on Saturday after they refused to leave. Hundreds of protesters had arrived for a demonstration against the ...

Rebel attack on Congolese city leaves 6 dead

A Congolese city at the center of the Ebola epidemic has again come under attack from rebels, leaving at least six people dead. Witnesses said Saturday that the rebels from the Ugandan-based group known as ADF had launched an assault in Ben...

Give Feedback