Daily Times

Steadfast policy implementation is critical for Pakistan in the period ahead, International Monetary Fund (IMF) spokesperson Julie Kozack said Thursday, after the lender approved a bailout for the cash-starved.

In a press briefing on Thursday, Julie Kozack, the IMF’s Director of Strategic Communications (COM), said that while it is relatively a short programme, the nine-month SBA “provides time for Pakistan to implement policies critical to strengthening its domestic and external economic situation, thereby supporting sustainability”.

“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 create an environment conducive to renewed private capital inflows,” Kozack responded when asked by a journalist if the nine-month SBA would be enough to get Pakistan out of its current economic turmoil.

Kozack reiterated that the the IMF stands “ready to work with Pakistan and its government on efforts to restore sustainability and an economic stability”.

However, the senior IMF official also warned that policy implementation would remain key to the SBA’s success.

“Steadfast policy implementation is critical in the period ahead. This will be critical for success of the programme and, of course, ultimately, to aid and support the people of Pakistan.”

Pakistan, currently in the midst of economic turmoil due to dollar shortage and runaway inflation, has seen a slight change in sentiment with Saudi Arabia, the UAE, and IMF extending a helping hand along with Fitch Ratings also upgrading the country’s status to ‘CCC’ from ‘CCC-’.

Inflation has rocketed, the rupee has reached a record low against the dollar, and the country is struggling to afford imports, causing a severe decline in industrial output.

Pakistan has brokered close to two dozen arrangements with the IMF, most of which have gone uncompleted.