An International Monetary Fund (IMF) mission is set to meet with Pakistani authorities next week to discuss the “next phase of engagement”. Esther Perez Ruiz, the Fund’s resident representative for Pakistan, mentioned that the mission, led by Nathan Porter, IMF’s mission chief to Pakistan, aims to establish better governance and enhance economic growth for the benefit of all Pakistanis.
Pakistan recently completed a short-term $3 billion programme with the IMF to prevent sovereign default. The government is now highlighting the need for a fresh, longer-term programme to address the country’s economic challenges.
Despite stabilizing the $350bn economy and reducing inflation to around 17 percent, Pakistan still faces a high fiscal shortfall and stagnant growth. The country is expected to seek at least $6bn in additional financing from the IMF under the Resilience and Sustainability Trust.
The IMF recognizes the high downside risks that Pakistan’s economy faces, including political uncertainty, cost of living, and external stability issues. The fund stresses the importance of timely post-programme external financing disbursements to maintain debt sustainability and exchange rate stability.
Additional input from Reuters
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