The International Monetary Fund (IMF) said on Tuesday night that it aimed to quickly reach an agreement with Pakistan on financial support from the global lender as Islamabad had taken decisive measures to align its policies with the economic reforms sought by the institution.
“Over the past few days, the Pakistani authorities have taken decisive measures to bring policies more in line with the economic reform programme supported by the IMF,” the lender’s mission chief for Pakistan, Nathan Porter, said in a statement.
These measures, he said, included the passage of a budget by the parliament that broadened the tax base while opening up space for higher social and development spending, as well as steps towards improving the functioning of the foreign exchange market and tightening monetary policy to reduce inflationary and balance-of-payment pressures that affected particularly the more vulnerable.
“The IMF team continues discussions with Pakistani authorities with the aim of quickly reaching an agreement on financial support from the IMF,” he added.
Porter’s statement comes as Pakistan continues to negotiate with the IMF for the completion of a ninth review of the $6.5 billion Extended Fund Facility agreed in 2019 and the release of a $1.2bn tranche.
The review has been stalled since October and the government is now hopeful of its completion soon with Prime Minister Shehbaz Sharif engaging with the IMF chief multiple times in recent days.
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