By In a significant development, Pakistan’s interim Prime Minister, Anwaar-ul-Haq Kakar, expressed optimism regarding the forthcoming review of the $3 billion International Monetary Fund (IMF) short-term facility.
This financial lifeline, granted earlier this year, played a crucial role in preventing Pakistan from defaulting on its debt obligations.
Kakar’s positive outlook on the upcoming IMF review holds great importance for Pakistan, given the country’s precarious financial situation, which narrowly avoided default back in July thanks to the last-minute intervention of the IMF.
The IMF’s team is scheduled to arrive in Pakistan on November 2, and Pakistan is proud to announce that it has successfully met its targets in preparation for this review. “The IMF delegation is scheduled to arrive on November 2nd,” the prime minister announced during a press briefing.
“We hold a strong conviction that our negotiations for the second tranche will progress without a hitch, all credit to our triumphant attainment of the established objectives.”
Under the terms of the bailout agreement, Pakistan received the initial tranche of $1.2 billion from the IMF in July. The successful review of this facility will pave the way for the release of the next tranche, providing much-needed support to Pakistan.
The nation has been grappling with challenges such as currency depreciation, diminishing foreign exchange reserves, and persistent double-digit inflation for several months.
Pakistan has taken measures to address its economic woes, including cracking down on currency smuggling, implementing restrictions on Afghan transit trade, and ensuring that the recent drop in petroleum prices is reflected in the prices of commodities. These measures are showing promising signs of economic recovery.
Prime Minister Kakar highlighted the positive impact of these measures, stating that the appreciation of the local currency has reduced the circular debt by more than Rs4,000 trillion rupees, while restrictions on Afghan transit trade have benefited the local industry.
The anticipated arrival of the IMF delegation in Pakistan has ignited hopes of financial stability and economic recovery for the South Asian nation. With successful negotiations, Pakistan stands to receive additional financial support, which will undoubtedly aid in addressing its pressing economic challenges.
The country’s commitment to fiscal discipline and proactive measures to curb currency smuggling and regulate trade with Afghanistan is a positive step towards securing a brighter financial future.
