Pakistan, facing cash crisis, asked for 24th bailout package, know what IMF said on the matter

Cash-strapped Pakistan is seeking the 24th medium-term bailout package for a permanent stimulus as part of long-term structural reforms. The International Monetary Fund (IMF) gave this information. According to the statement issued, a staff-level agreement has been reached with the Pakistani authorities on the second and final review of Pakistan’s stabilization program supported by the IMF’s US$3 billion standby arrangement approved in July last year.

Emphasis on economic reforms in Pakistan
As in previous programmes, the focus will be on four core sector reforms. The top objective of the next Medium Term Program Extended Fund Facility of approximately 36 to 39 months will be to strengthen public finances, including fiscal consolidation and broadening the tax base.

Main focus on four central sector reforms
The second objective of the next program will be to restore the viability of the energy sector by accelerating cost-saving reforms. The third main objective is to return inflation to target, support external rebalancing and rebuild foreign exchange reserves with a more transparent flexible foreign exchange market. The fourth and final important objective will be to promote private-led activity, as well as pursue state-owned enterprises (SOE) reforms to improve sector performance and increase investment in human resources.

Pakistan’s economic and financial situation has improved – Nathan
Nathan, the IMF mission chief in Pakistan, said Pakistan’s economic and financial situation had improved in the months since the first review. Growth and confidence continue to improve due to resumption of policy management, flows from multilateral and bilateral partners.