IMF Mission Departs Pakistan Without Reaching Staff-Level Agreement

The IMF mission returned to Washington without a staff-level agreement on the new bailout package.

At the visit’s conclusion, Porter stated:

“Building on the economic stabilization achieved through the 2023 Stand-by Arrangement, significant progress was made towards a Staff Level Agreement (SLA) on a comprehensive economic policy and reform program under an Extended Fund Facility (EFF).

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“The authorities’ reform program aims to transition Pakistan from stabilization to strong, inclusive, and resilient growth. To achieve this, they plan to strengthen public finances by improving domestic revenue through fair taxation and increasing spending on human capital, social protection, and climate resilience. They also aim to secure energy sector viability with reforms to reduce high energy costs, maintain low and stable inflation through appropriate monetary and exchange rate policies, enhance public service provision via SOE restructuring and privatization, and promote private sector development by ensuring a level playing field for investment and stronger governance.

“The mission and authorities will continue policy discussions virtually in the coming days to finalize discussions, including the financial support needed for the reform efforts from the IMF and Pakistan’s bilateral and multilateral partners.

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