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Kristalina Georgieva, IMF Managing Director, stresses the importance of resolving key issues for Pakistan to advance a follow-up program after the previous $3 billion stand-by arrangement.
Georgieva acknowledges Pakistan’s notable economic progress and successful program completion, emphasizing the need to address critical concerns such as expanding the tax base, optimizing public spending, and enhancing financial transparency.
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A recent staff-level agreement for the final review of the existing arrangement is anticipated to unlock approximately $1.1 billion pending board approval, slated for late April 2024.
Both parties are committed to negotiating a comprehensive bailout package, focusing on policy reforms to mitigate deficits, strengthen reserves, and manage debts. Finance Minister Muhammad Aurangzeb expresses optimism for a potential agreement by the fiscal year’s end, with detailed discussions scheduled during the IMF/WB Spring Meetings in Washington DC.
Pakistan aims to establish a new medium-term program lasting two to three years to address fiscal and external sustainability challenges, promote economic recovery, and foster inclusive growth.