Pakistan’s Economy on the Right Track, Says IMF Chief

In a significant boost to Pakistan’s economic prospects, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has praised the country’s progress, stating that its economy is moving in the right direction.

Congratulations to Pakistan

Georgieva congratulated the government and people of Pakistan after the IMF Executive Board meeting, acknowledging the country’s significant reforms and improved growth. Pakistan’s reform program, presented before the board, has led to economic improvement.

Relief to the Poor

The Pakistani government’s efforts to provide relief to the poor were also commended by Georgieva. This move is expected to have a positive impact on the country’s economic stability.

IMF’s Support

The IMF Executive Board approved a 37-month Extended Fund Facility (EFF) arrangement of about $7 billion for Pakistan. This loan aims to support Pakistan’s economic stability and growth, with key policy goals including:

• Sustainable Public Finances
• Reduced Inflation
• Strengthened External Buffers

Initial Installment

Pakistan will receive an initial installment of $1.1 billion by September 30, with the loan carrying an interest rate below 5 percent.

Challenges Ahead

Despite progress, Pakistan still faces challenges, including a difficult business environment, weak governance, and an outsized role of the state, hindering investment. The IMF warned that spending on health and education has been insufficient to tackle persistent poverty.

Prime Minister’s Response

Prime Minister Shehbaz Sharif hailed the deal, thanking Kristalina Georgieva and her team for the approval. This development is a positive step for Pakistan’s economy, indicating a brighter future ahead.

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