IMF Mission Leaves Pakistan Without Staff-Level Agreement

IMF Mission

The International Monetary Fund (IMF) Mission has returned to Washington without finalizing a staff-level agreement on the new bailout package for Pakistan.

At the conclusion of the visit, Nathan Porter, the IMF Mission Chief, issued the following statement:

“Building on the economic stabilization achieved through the successful completion of the 2023 Stand-by Arrangement, the IMF and the Pakistani authorities made significant progress toward reaching a Staff-Level Agreement (SLA) on a comprehensive economic policy and reform program that can be supported under an Extended Fund Facility (EFF).

“The authorities’ reform program aims to move Pakistan from economic stabilization to strong, inclusive, and resilient growth. To achieve this, the authorities plan to strengthen public finances to reduce vulnerabilities by improving domestic revenue mobilization through fairer taxation, while scaling up spending for human capital, social protection, and climate resilience. They also aim to secure energy sector viability, including reforms to reduce the high cost of energy; continue progress towards low and stable inflation through appropriate monetary and exchange rate policies; improve public service provision through state-owned enterprise (SOE) restructuring and privatization; and promote private sector development by securing a level-playing field for investment and stronger governance.

“The mission and the authorities will continue policy discussions virtually over the coming days, aiming to finalize discussions, including the financial support needed to underpin the authorities’ reform efforts from the IMF and Pakistan’s bilateral and multilateral partners,” Porter said.

“The IMF team is grateful to the Pakistani authorities, private sector, and development partners for their fruitful discussions and hospitality throughout this mission,” he added.