Pakistan Needs Another IMF Programme, IMF

Web Desk — In a report released on Tuesday, IMF says Pakistan needs another International Monetary Fund (IMF) programme and support from other multilateral lenders beyond the coming election cycle and the ongoing standby arrangement.

IMF has issued a 120-page report analysing Pakistan’s macroeconomic outlook. The report says that resolving Pakistan’s structural challenges, including long-term BOP [balance of payments] pressures, will require continued adjustment and creditor support beyond the current programme period.

The report, based on Memorandum of Economic and Fiscal Policies (MEFP) with Pakistan, says a possible successor arrangement could help anchor the policy adjustment needed to restore Pakistan’s medium-term viability and capacity to repay.

The IMF assesment noted that Pakistan’s economic challenges were exceptionally high, complex and multifacted. The assessment report suggests that addressing such challenges requires steadfast implementation of agreed policies, as well as continued financial support from external partners.

To reduce risks and maintain macroeconomic stability, consistent and decisive implementation of programme agreements will be essential, the report added.