Pakistan gets good news from the IMF over the economic performance

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Pakistan gets good news from the IMF over the economic performance

ISLAMABAD: Pakistan gets good news from the International Monetary Fund over the economic performance.

The International Monetary Fund (IMF) and the local authorities have finally reached a staff-level agreement after the lending agency concluded its first quarterly review of $6 billion Extended Fund Facility (EFF).

“All performance criteria for end-September were met with comfortable margins and progress continues towards meeting all structural benchmarks,” a statement issued by the IMF said, adding that based on the preliminary findings of this mission, staff will prepare a report which, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

With the conclusion of the first quarterly review, Pakistan expects release of second tranche of about $453 million by next month. The visiting IMF mission which was led by Mission Chief Ernesto Ramirez Rigo held a brief meeting with government economic team led by Adviser to Prime Minister on Finance & Revenue, Dr Abdul Hafeez Shaikh, on conclusion of the review.

According to officials, the IMF team will be leaving the country after the concluding meeting. The next review, according to the officials, will take place early in 2020.

As per the statement issued by IMF on Friday, the government’s policies have started to bear fruit, helping to reverse the buildup of vulnerabilities and restore economic stability. The external and fiscal deficits are narrowing, inflation is expected to decline, and growth, although slow, remains positive.

Sustaining sound policies and advancing structural reforms remain key priorities to enhance resilience and pave the way for stronger and sustainable growth.

According to the statement, an IMF mission led by Ernesto Ramirez Rigo visited Islamabad from October 28 to November 8, 2019 to conduct discussions on the first review under the EEF. At the end of the visit, Mr. Ramirez Rigo made the following statement: