This is how IMF bailout package will help boosting Pakistan’s Economy
- IMF package meant for reforms to stabilize the economy – IMF Official.
- The reforms under the IMF program will extend stability to Pakistan.
- Another characteristic is ensuring that market forces determine the value of the currency.
The International Monetary Fund (IMF) said that the bailout for Pakistan is meant for reforms to stabilize the economy.
The resident representative of IMF in Islamabad, Teresa Daban Sanchez, said that the IMF program will ensure the stability of the growth rate in Pakistan.
She said that Pakistan will receive $6billion under the IMF’s extended fund facility (EFF). She further said that the first tranche of the package of $1billion already released to Pakistan.
The resident representative also said that the first review of the performance of the economy will be completed before December and after that, the second installment of the package will be released.
Teresa said that Pakistan had shared full details of CPEC loans with the IMF, which was mostly private sector investment in energy and infrastructure.
An official of IMF said:
“The lending institution stresses for an increase in tax recoveries, the autonomy of the central bank and reining in the inflation rate.”
It also said that another characteristic of the IMF bailout package is ensuring that market forces determine the value of the currency.
Energy Projects by the IMF:
Energy projects had helped Pakistan in dealing with acute shortages of power and this was a positive aspect.
An analysis of the debt sustainability showed that CPEC loans were manageable. However, the country’s overall debt situation was not sustainable.
Basic Pillars of New Program:
The resident representative IMF said that fiscal consolidation and revenue mobilization, market-based exchange rate and social sector protection are three basic pillars of the new IMF program.
Earlier, theInternational Monetary Fund has appreciated Pakistan’s resolve to stabilize and revive the economy.
It also hailed the government’s focus on social safety programs for the vulnerable measures taken for curtailing expenditure and broadening of the tax base in the recent budget.