The International Monetary Fund has given the green signal to Pakistan for the release of $1.1 billion loan tranche. The lending body made the announcement on Wednesday after it reached a staff-level agreement with Pakistan for the $3 billion bailout package.
According to the press release issued by the IMF, the agreement recognizes the strong programme implementation by the State Bank of Pakistan and the caretaker government in recent months, as well as the new government’s intentions for ongoing policy and reform efforts to move Pakistan from stabilisation to a strong and sustainable recovery.
“Pakistan’s economic and financial position has improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of inflows from multilateral and bilateral partners,” IMF said in the press release.
However, the IMF noted that the financial growth was expected to be modest this year. “….inflation remains well above target, and ongoing policy and reform efforts are required to address Pakistan’s deep-seated economic vulnerabilities amidst the ongoing challenges posed by elevated external and domestic financing needs and an unsettled external environment,” added the IMF.