SRINAGAR: The International Monetary Fund has approved an immediate disbursal of $1.1 billion to Pakistan as part of a bailout package and said the country needs to take tough measures to bring its economy back on track.
A decision in this regard was taken by the International Monetary Fund (IMF) Executive Board as it completed the second and final review of Pakistan’s economic reform programme supported by the IMF’s Stand-By Arrangement (SBA).
With this development, the disbursements under the SBA reached around $3 billion.
IMF’s Deputy Managing Director Antoinette Sayeh said, ‘Given the significant challenges ahead, Pakistan should capitalize on this hard-won stability, persevering — beyond the current arrangement — with sound macroeconomic policies and structural reforms to create stronger, inclusive, and sustainable growth.’ Continued external support will also be critical, she said.
Achieving strong, long-term inclusive growth and creating jobs require accelerating structural reforms and continued protection of the most vulnerable through an adequately-financed Benazir Income Support Program, the IMF official said.
Priorities include advancing the reform of state-owned enterprises (SOEs) and ensuring that all SOEs fall under the new policy framework, strengthening governance and anti-corruption institutions, and continuing to build climate resilience, she added.
