Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement on the first review under the Extended Fund Facility on Friday, according to which Islamabad will receive another installment of US$450 million.
The international money lender issued a press release according to which the end-September performance criteria were met with “comfortable margins and that progress continues towards meeting all structural benchmarks”.
“Sustaining sound policies and advancing structural reforms remain key priorities to enhance resilience and pave the way for stronger and sustainable growth,” it read.
“On the macroeconomic front, signs that economic stability is gradually taking hold are steadily emerging. The external position is strengthening, underpinned by an orderly transition to a flexible, market-determined exchange rate by the State Bank of Pakistan (SBP) and a higher-than-expected increase in SBP’s net international reserves. Budgetary revenue collections are growing on the back of efforts on tax administration and policy changes, and despite the ongoing compression in import-related taxes. Inflation pressures are expected to recede soon, reflecting an appropriate monetary stance. Importantly, measures to strengthen the social safety net are being implemented, and development spending is been prioritized,” he stated.