The caretaker government of Pakistan is set to begin discussions with the International Monetary Fund (IMF) on the upcoming quarterly review next month. The Senate committee was informed about this during a recent meeting. The review, scheduled for October, will be based on data from end-September, and it is expected to secure a disbursement of around $710 million in December.
In July, the IMF executive board approved a nine-month Stabilization and Growth Program (SBA) for Pakistan to support its economic stabilization efforts. The approval included an immediate disbursement of $1.2 billion, with the remaining amount to be phased over the course of the program, subject to two quarterly reviews.
While signing the SBA, the IMF emphasized the challenges faced by Pakistan and stated that full and timely implementation of the program would be critical for its success. The SBA is designed to provide a policy anchor and a framework for financial support from multilateral and bilateral partners in the future.
Last month, Finance Minister Shamshad Akhtar had a virtual meeting with the IMF staff mission, where she expressed the caretaker government’s commitment to implementing the policy actions outlined in the SBA. This commitment is aimed at ensuring economic stability during the caretaker government’s tenure.
Prime Minister Anwaarul Haq Kakar also met with IMF chief Kristalina Georgieva during his visit to New York for the United Nations General Assembly. Georgieva encouraged the prime minister to “tax the rich and protect the poor” during their engagement. The meeting was described as constructive, focusing on mutual commitments.
Speaking at the Senate committee meeting, Finance Minister Shamshad highlighted that inflation was declining, but an increase in petrol prices could disrupt the government’s plan. She stressed the need for a charter of economy and called for politicians to develop a consensus on economic issues. Shamshad also mentioned that the government is actively working on the privatization and outsourcing of public entities, including electricity distribution companies.
The finance minister emphasized that solving economic problems requires the collaboration of politicians, stating that it is a responsibility that falls on their shoulders and not just the caretaker government’s.
Overall, the government is determined to work closely with the IMF and implement necessary reforms to stabilize the economy and promote sustainable growth.