Mohsin Siddiqui (Chief Reporter)

The International Monetary Fund (IMF) is poised to dispatch its mission to Pakistan following the establishment of a new cabinet under the $3 billion Standby Arrangement (SBA) program.

During a press briefing held at the IMF headquarters in Washington, DC, on Thursday, Julie Kozak, the Fund’s Communications Director, addressed inquiries regarding the IMF’s evaluation of Pakistan’s external financial requirements for the 2024 fiscal year. Additionally, Kozak was asked about the anticipated size of the next IMF program for Pakistan and the associated risks being assessed by the Fund in its dealings with the country.

Kozak responded by highlighting that on January 11, the IMF Executive Board endorsed the first review of the Standby Arrangement with Pakistan, resulting in total disbursements amounting to approximately $1.9 billion. She emphasized that the SBA-supported program is instrumental in the government’s endeavors to stabilize the economy, with a particular focus on safeguarding the most vulnerable segments of the population.

Throughout the caretaker government’s tenure, authorities upheld economic stability by diligently adhering to fiscal targets, safeguarding the social safety net, and maintaining a stringent monetary policy stance to curb inflation. Concurrently, efforts were made to bolster foreign exchange reserves while implementing timely adjustments in tariffs to enhance the viability of the energy sector.

The IMF is poised to conduct a mission for the second review of the Standby program shortly after the formation of the new cabinet. Kozak reiterated the IMF’s commitment to collaborating with the new government to formulate policies that ensure macroeconomic stability.

Addressing a query regarding political instability, Kozak refrained from commenting on political matters but emphasized the IMF’s readiness to engage with the government post-cabinet formation to ensure macroeconomic stability for the benefit of the people of Pakistan.