Pakistan economic system contracted in outgoing fiscal yr with a adverse 0.38% for the primary time in 68 years
Islamabad:
The International Monetary Fund (IMF) and cash-strapped Pakistan on Tuesday reached an settlement over reforms paving the best way for imbursement of $500 million as a part of revival of a stalled bailout programme, the finance ministry mentioned.
The IMF had agreed in 2019 to supply Pakistan $6 billion underneath a 39-month Extended Fund Facility (EFF) association but it surely was disrupted resulting from COVID-19 pandemic final yr.
Advisor on Finance Dr Abdul Hafeez Shaikh introduced on social media that the settlement was reached at a stall-level assembly between the 2 sides.
“I would like to share that the Government of Pakistan has reached a staff level agreement with the IMF. Overcoming the challenges created by the pandemic has required concerted effort,” he tweeted.
The Advisor termed it as a “good development for Pakistan”, whereas thanking Prime Minister Imran Khan and the IMF employees for his or her assist.
An IMF workforce led by Ernesto Ramirez Rigo concluded digital discussions with the Pakistani authorities and reached a staff-level settlement on the second to fifth evaluations of the authorities’ reform programme, in line with a press release by the Fund.
It mentioned that the settlement strikes an applicable steadiness between supporting the economic system, guaranteeing debt sustainability and advancing structural reform.
“Pending approval of the Executive Board, the reviews’ completion would release around $500 million,” the IMF mentioned.
It additionally mentioned that Pakistan authorities had been dedicated to bold coverage actions and structural reforms to strengthen financial resilience, advance sustainable progress, and obtain the EFF’s medium-term targets.
The fiscal assist programme is vital for Pakistan to win the worldwide confidence in its economic system which is struggling to come back out of the influence of the pandemic.
Despite a hiatus within the bailout bundle, the IMF offered Pakistan $1.four billion in emergency financing to assist it mitigating the financial influence of COVID-19.
For the primary time in 68 years, Pakistan’s economic system contracted within the outgoing fiscal yr with a adverse 0.38 per cent because of the antagonistic influence of the COVID-19 pandemic coupled with the already weak monetary state of affairs earlier than the lethal an infection hit the nation.
(Except for the headline, this story has not been edited by LiveNews360 employees and is printed from a syndicated feed.)
