Finally Pakistan, IMF reach staff-level agreement

Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement with regard to policies and reforms. However, the accord is subject to approval by the Executive Board of the Fund.

A statement issued by a spokesperson for the IMF on Monday said that “the agreement is subject to the approval of the executive board.” The spokesperson said that if the agreement between Pakistan and IMF is finalised, Islamabad will get about $1,059 million out of $6 billion package.

the Fund has acknowledged that despite the difficult conditions, Pakistan has done better on the policies given by the institution.

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The IMF has said that by the end of June, Pakistan has acted on all the agreed agreements except to overcome the budget deficit. It also admitted that Pakistan has played an important role in preventing funding for “anti-money laundering and terrorism framework”.

The Fund lauded Islamabad’s response to the Covid pandemic, adding that it helped to control the effects of the virus. On the other hand, the Federal Board of Revenue (FBR) took valuable steps for tax revenue receipts.

The spokesperson said that State Bank of Pakistan (SBP) had also taken macro prudential measures to facilitate loans to consumers by changing the proper monetary policy stance.

With the approval of the loan, a new multi-dimensional partnership programme will be launched between Pakistan and the IMF. GDP growth rate is expected to remain at 4 per cent in fiscal year 2021-22 with loan approval. While the growth rate is expected to remain at 4.5 per cent in the next fiscal year.

It is hoped that the depreciation of the rupee had led to an increase in inflation which would begin to decline. It will also help overcome the obstacles in the orders of demand and supply.