IMF says steadfast policy implementation critical for Pakistan

The International Monetary Fund’s (IMF) Director of Strategic Communications Julie Kozack has said that “steadfast implementation” of the nine-month Stand-by Arrangement (SBA) was critical to Pakistan’s future. “Steadfast implementation is critical to address its large financing needs & support the most vulnerable,” she said in a statement on Thursday. “The SBA is aimed at supporting the authorities’ immediate efforts to stabilise the economy,” she said, “and also to ensure that the current balance of payments need is filled. “While it is a relatively short programme, it provides time for Pakistan to implement policies critical to strengthening its domestic and external economic situation thereby supporting sustainability. “Of course, resolving Pakistan’s structural challenges will likely require continued reforms over the medium term to underpin the needed economic transformations to strengthen inclusive growth prospects and to create an environment conducive to renewed private capital inflows. “We at the IMF always stand ready to work with Pakistan and the Pakistani government on these efforts to restore sustainability and economic stability,” she added. Earlier this week, the IMF approved a $3 billion bailout package to save Pakistan from default and put it back on the reforms path – a journey that Islamabad undertook only after friendly countries linked its support with the fund’s deal. He paid his tributes to the the Chinese President XI Jinping, Saudi Crown Prince Mohammad bin Salman and UAE President Mohamed bin Zayed Al Nahyan for their support in need of the hour. He informed that as a result of serious efforts by the coalition government and himself, the Chinese company kept the cost of the project at the level agreed upon in 2017-18 by then PML-N government and not include the average inflation of around 10% in the project cost. Further, he said on his request, a discount of Rs 30 billion was also given to Pakistan which reflected a sense of sincerity between the two countries. Charge D’affaires of the Chinese embassy in Pakistan, Pang Chunxue said C5 would help Pakistan building low carbon, clean and cheap energy which would also produce local jobs and would engage the local industries to contribute in the project. Chairman of China National Nuclear Cooperation Yu Jianfeng said cooperation between Pakistan and China in nuclear energy had become an integral part of the all weather strategic cooperative partnership. He said the C5 project was a significant milestone in the HPR 1000 development global journey. Hualong One (HPR 1000) is the 3rd-generation nuclear power brand to which China has exclusive intellectual property rights. Planning Minister Ahsan Iqbal, Energy Minister Khurram Dastgir Khan, and Chairman PAEC Dr Raja Ali Raza were also present on the occasion. Meanwhile, Prime Minister Shehbaz Sharif said that the government was promoting the skilled-based vocational training to expand foreign remittances that would ultimately help improving the current account deficit of the country. In his address after laying the foundation stone of the central campus of National University of Technology (NUTECH) in the federal capital, the prime minister said the new campus would help producing thousands of skilled-based human resource every year who would play their key role in the country’s development.The IMF Executive Board approved a nine-month SBA in the amount of SDR2.25 billion or about $3 billion. The amount is equal to Pakistan’s 111% of the quota. Meanwhile, Prime Minister Muhammad Shehbaz Sharif had a telephonic conversation with Managing Director IMF Kristalina Georgieva on Friday and he conveyed profound gratitude to her for support and assistance in materializing the recently concluded Stand-by Agreement for $3 billion. The prime minister appreciated the MD for her leadership and professionalism. He also acknowledged that MD felt for the poor and termed her support as invaluable. The IMF MD said that Prime Minister of Pakistan built a very convincing case, though the IMF Board was skeptical about Pakistan’s commitment to fulfilling the conditions of the agreement due to the past trust deficit. However, in the light of her continued engagement with the Prime minister, she assured the Board that Pakistan will deliver on its commitments as she had personally met the prime minister and seen his seriousness to deliver. She acknowledged the leadership shown by prime minister. She underlined that there was strong partnership and mutual trust between both parties now. Terming Pakistan as an important member of IMF, she reassured to continue to help Pakistan. The prime minister on the occasion appreciated MD Ms. Georgieva for her positive approach and her frank comments during the Prime Minister’s interaction with her in Paris. Eventually, the hard work on both sides paid off and Standby Arrangement (SBA) was signed. The prime minister reassured that he will not tolerate an iota of violation of this agreement. “This government is here till August after which an interim government will take over and he is confident that they will continue to fulfill the obligations.”