|
With the latest approval, Pakistan has received about $3.3
billion from the IMF since last year. Under the bailout,
Islamabad will receive loan installments over 37 months if it
meets the agreed conditions.
Pakistan, for decades, has relied on loans from the IMF and
friendly nations to meet its financing needs.
Prime Minister Shehbaz Sharif welcomed the decision, calling it
recognition of the government’s reform drive and the “effective
implementation” of IMF-endorsed measures. He said the latest IMF
decision shows Pakistan is taking the steps needed to stabilize
and grow its economy after narrowly avoiding default last year.
In a statement, Sharif also praised Field Marshal Gen. Asim
Munir, the country’s powerful army chief and chief of defense
forces, for playing a key role in supporting the reform agenda.
He also praised Finance Minister Muhammad Aurangzeb and his team
for their “tireless work” in pushing through difficult changes.
Sharif said Pakistan’s reform and digitalization efforts have
now become a global “case study,” but cautioned that shifting
from stability to sustained growth will demand further effort.
In a statement, the IMF said Pakistan has made “significant
progress” in stabilizing the economy despite a tough global
environment and this year’s devastating floods. It noted a
stronger fiscal position, higher foreign exchange reserves — now
at $14.5 billion — and an uptick in growth. Inflation has risen
in recent months because floods triggered by above-normal
monsoon rains pushed up food prices, but the fund expects that
to ease.
The bailout, approved in 2024, aims to rebuild Pakistan’s
reserves, strengthen its tax system and reform loss-making
state-owned companies, especially in the energy sector. The
climate facility, approved earlier this year, supports efforts
to improve disaster management, water use and climate-related
financial reporting.
Nigel Clarke, the IMF’s deputy managing director, said Pakistan
must stay disciplined as it faces an uncertain outlook. He
praised the government’s commitment to meeting next year’s
budget targets while responding to flood damage, and urged
Islamabad to keep monetary policy tight, allow the exchange rate
to move freely and push ahead with long-delayed energy reforms.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
