IMF ‘satisfactory’ with Pakistan’s $7bn loan programme implementation

ISLAMABAD: The International Monetary Fund (IMF) mission after a key visit to Pakistan acknowledged the country’s strong implementation of the $7 billion loan programme agreed upon last year.

In a statement issued on Friday after the conclusion of discussions, IMF Mission Chief Nathan Porter said that the global lender and Pakistani authorities made significant progress toward reaching a staff level agreement on the first review of an ongoing $7 billion programme.

“The IMF and the Pakistani authorities made significant progress toward reaching a Staff Level Agreement (SLA) on the first review under the 37-month Extended Arrangement under the Extended Fund Facility (EFF),” IMF Mission Chief said.

The International Monetary Fund (IMF) delegation led by Nathan Porter visited Islamabad and Karachi from February 24 to March 14 to undertake the First Review for the 37-month extended arrangement under the Extended Fund Facility (EFF) and on discussions for an arrangement of a fresh loan under the Resilience and Sustainability Facility (RSF).

The team held discussions on the first review of Pakistan’s economic programme supported by the EFF and on a possible new arrangement under the RSF, according to a statement.

Highlighting Pakistan’s “strong” implementation of the bailout package, Porter said that the discussions between the two sides “made considerable progress in several areas.

“Program implementation has been strong, and the discussions have made considerable progress in several areas including the planned fiscal consolidation to durably reduce public debt, maintenance of sufficiently tight monetary policy to maintain low inflation, acceleration of cost-reducing reforms to improve energy sector viability, and implementation of Pakistan’s structural reform agenda to accelerate growth, while strengthening social protection and rebuilding health and education spending,” the fund noted.

The IMF official also noted progress in discussions on “Islamabad’s climate reform agenda”, which aims to reduce vulnerabilities from natural disasters-related risks, and accompanying reforms which could be supported under a possible arrangement under the Resilience and Sustainability Facility (RSF).