Pakistan seeking potential follow-up loan programme to $3bn SBA, says IMF chief
Pakistan
Pakistan seeking potential follow-up loan programme to $3bn SBA, says IMF chief
- Pakistan successfully completing its existing programme
- Economy performing somewhat better with reserves being built up
- Very important issues to be solved such as tax base etc
(Reuters) – Pakistan is in discussions with the International Monetary Fund on a potential follow-up programme to its nine-month, $3 billion stand-by arrangement, IMF chief Kristalina Georgieva said on Thursday, adding that it had important issues to solve.
Georgieva told an event at the Atlantic Council think-tank in Washington that Pakistan was successfully completing its existing programme with the IMF and its economy was performing somewhat better, with reserves now being built up.
"There is a commitment to continue on this path, and the country is turning to the fund for potentially having a follow-up programme," Georgieva said, flagging issues that the struggling South Asian nation still needed to address.
"There are very important issues to be solved in Pakistan: the tax base, how the richer part of society contributes to the economy, the way public spending is being directed and of course, creating ... a more transparent environment."
Pakistan and the IMF last month reached a staff-level agreement on the second and last review of the $3 billion stand-by arrangement, which, if cleared by the global lender's board, will release about $1.1 billion to the struggling South Asian nation. The IMF's board is expected to review the matter in late April, but no firm date has been set, a spokesperson said.
Both sides have also spoken about negotiating a longer-term bailout and continuing with necessary policy reforms to rein in deficits, build up reserves and manage soaring debt servicing.
