IMF chief assures Pakistan of financial support in difficult times

Govt engages IMF for $1.4 billion additional grant

ISLAMABAD (Dunya News) – International Monetary Fund (IMF) Managing Director Kristalina Georgieva has announced that international lender is ready to provide financial support to Pakistan in difficult times.

The IMF chief took to the twitter to make the announcement saying, Had “a good conversation with #Pakistan PM @ImranKhanPTI on measures to mitigate the impact of the #COVID-19.

She further said, “The IMF provides financial support during this difficult time and remains closely engaged on the design of policies.”

Govt engages IMF for $1.4 billion additional grant

On Wednesday, Adviser to the Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh said in view of the evolving situation due to the spread of coronavirus (COVID-19), the government had initiated negotiations with the International Monetary Fund (IMF) for an additional grant of $1.4 billion on fast-track basis.

The government’s financial team had made a comprehensive funds mobilization strategy for acquiring $ 1 billion from the World Bank (WB) and $ 3.5 million from the Asian Development Bank, besides early release of $ 900 million earmarked by the latter for different projects, he said while addressing a press conference.

He was flanked by Adviser to the Prime Minister on Commerce, Textile and Industry Abdul Razak Dawood, Federal Minister for Economic Affairs Muhammad Hammad Azhar, Special Assistant to the PM on Information and Broadcasting Dr Firdous Ashiq Awan and Special Assistant to the Prime Minister on Petroleum Nadeem Babar.

The adviser said the $1.4 billion grant would be in line with the previous programme Pakistan had with the fund, which would be disbursed at the earliest.

Minister Hammad Azhar said the government was fully focused and committed to facilitate the people in the critical situation.

The provision of medical facilities and food to the people was the topmost priority of the government and for that the government would pursue the WB and the ADB to release their aid amounting to $600 million on different counts on fast track basis, he added.

However, all the international financial institutions would be engaged for economic assistance when the coronavirus had been overcome, he said.

Hammad said,“We are also in coordination with Japan Intentional Cooperation Agency (JICA) to get assistance for providing facilities to the people in current situation.”

He said the government would provide facilities to the business community for continuing business activities sin the country.

Adviser on Commerce Abdul Razak Dawood said it was the government’s priority government to save the domestic businesses, including Small and Medium Enterprises (SMEs), retailers and labour.

SAPM Dr Firdous Ashiq Awan said the media had been playing an important role in the current crisis and the government would take all necessary safety measures to protect the lives of journalists.

IMF chief lauds PM Imran s efforts

On Thursday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva lauded Pakistan government led by Prime Minister Imran Khan efforts to address economic challenges.

In a statement issued on Thursday, the IMF managing director said that the authorities in Pakistan have continued their reform efforts to address Pakistan’s economic challenges, but progress is being threatened by the devastating effects of the COVID-19 outbreak and the deterioration in global economic and financial conditions.

She said that PM Khan and his government have swiftly approved an economic stimulus package aimed at containing the spread of the virus and providing support to affected families and businesses. Similarly, the State Bank of Pakistan has adopted a timely set of measures, including a lowering of the policy rate, new refinancing facilities to support the flow of credit, and temporary regulatory relief measures.

Kristalina Georgieva further said that to support these efforts and ensure prompt and adequate relief to the people and the economy, Pakistan government has requested financial assistance under the Fund’s Rapid Financing Instrument (RFI).

“This emergency financing will allow the government to address additional and urgent balance of payments needs and support policies that would make it possible to direct funds swiftly to Pakistan’s most affected sectors, including social protection, daily wage earners, and the healthcare system,” she said and added our team is working expeditiously to respond to this request so that a proposal can be considered by the IMF’s Executive Board as soon as possible.

The IMF chief said: “In parallel, the authorities have reaffirmed their commitment to the reform policies included in the current arrangement under the Extended Fund Facility (EFF). These reforms are crucial to boost Pakistan’s growth potential to deliver broad based benefits for all Pakistanis, especially the most vulnerable segments of the population.”

“The Fund stands ready to continue to support the authorities’ efforts to implement much-needed economic and structural reforms aimed at fostering strong and sustainable growth,” she added.