Via IMF (Den Internationale Valutafond)

IMF Executive Board Completes the First Review of Pakistan’s Extended Fund Facility

December 19, 2019

  • Pakistan’s economic reform program is on track. Decisive policy implementation by the Pakistani authorities is helping to preserve economic stability aiming to put the economy on the path of sustainable growth.
  • Transition to a market-determined exchange rate has been orderly; inflation has started to stabilize, mitigating the impact on the most vulnerable groups of the population.
  • The authorities remain committed to expanding the social safety nets, reducing poverty, and narrowing the gender gap.

The Executive Board of the International Monetary Fund (IMF) on December
19, 2019 completed the first review of Pakistan’s economic performance
under the Extended Fund Facility (EFF). The completion of the review will
allow the authorities to draw SDR 328 million (about US$ 452.4 million),
bringing total disbursements to SDR 1,044 million (about US$ 1,440

The Executive Board approved the 39-month, SDR 4,268 million (about $6
billion at the time of approval of the arrangement, or 210 percent of
quota) EFF for Pakistan on July 3, 2019 (see

Press Release No. 19/264


Following the Executive Board’s decision, Mr. David Lipton, First Deputy
Managing Director and Acting Chair, issued the following statement:

“Pakistan’s program is on track and has started to bear fruit. However,
risks remain elevated. Strong ownership and steadfast reform implementation
are critical to entrench macroeconomic stability and support robust and
balanced growth.

“The authorities are committed to sustaining the progress on fiscal
adjustment to place debt on a downward path. The planned reforms include
strengthening tax revenue mobilization, including the elimination of tax
exemptions and loopholes, and prudent expenditure policies. Preparations
for a comprehensive tax policy reform should start early to ensure timely
implementation. Enhanced social safety nets will help alleviate social
costs and build support for reforms.

“The flexible, market-determined exchange rate remains essential to cushion
the economy against external shocks and rebuild reserve buffers. The
current monetary stance is appropriately tight and should only be eased
once disinflation is firmly entrenched. Strengthening the State Bank of
Pakistan’s autonomy and governance will support these efforts.

“Faster progress is needed to improve the AML/CFT framework, supported by
technical assistance from the IMF and other capacity development providers.
Swift adoption of all the necessary measures is needed to exit the FATF’s
list of jurisdictions with AML/CFT deficiencies.

“The authorities have adopted a comprehensive plan to address the
accumulation of arrears in the power sector. Its full implementation is key
to improve collection, reduce losses, and enhance governance. Timely and
regular adjustment of energy tariffs will bring the sector in line with
cost recovery.

‘Efforts are ongoing to further improve the business environment,
strengthen governance, and foster private sector investment. Reform of the
state-owned enterprise sector will help put Pakistan’s public finances on a
sustainable path and have positive spillovers by leveling the playing field
and improving the provision of services.”

IMF Communications Department

PRESS OFFICER: Olga Stankova

Phone: +1 202 623-7100Email:


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