Pakistan’s economy on the right track, says IMF Chief

WASHINGTON: The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has praised Pakistan’s economic progress, stating that the country’s economy is moving in the right direction.

The executive board of the International Monetary Fund has approved a new $7 billion loan for cash-strapped Pakistan

In her statement, Georgieva congratulated the Pakistani government and the people for securing the loan program approval.

She highlighted that the government is taxing the wealthy to support the poor, which is a positive step toward economic stability.

Georgieva further added that inflation in Pakistan is declining, and the country’s economic reforms have led to noticeable improvements in overall economic conditions and growth.

The loan, which Islamabad will receive in installments over 37 months, is aimed at boosting Pakistan’s ailing economy, officials added.

The global lender said its immediate disbursement will be about $1 billion.

IMF STATEMENT

In a statement issued Thursday, IMF praised Pakistan for taking key steps to restore economic stability. Growth has rebounded, inflation has fallen to single digits, and a calm foreign exchange market have allowed the rebuilding of reserve buffers.

But it also criticized authorities. The IMF warned that, despite the progress, Pakistan’s vulnerabilities and structural challenges remained formidable.

It said a difficult business environment, weak governance, and an outsized role of the state hindered investment, while the tax base remained too narrow.

“Spending on health and education has been insufficient to tackle persistent poverty, and inadequate infrastructure investment has limited economic potential and left Pakistan vulnerable to the impact of climate change,” it warned.

PM THANKS IMF

Prime Minister Shehbaz Sharif in a statement hailed the deal that his team had been negotiating with the IMF since June.

He thanked Kristalina Georgieva, the head of the IMF and her team, for the approval.

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