Press Release No. 09/402

Press Release No. 09/402
November 12, 2009

An International Monetary Fund (IMF) staff mission, led by Adnan Mazarei, met with the Pakistani authorities in Dubai over the past week to initiate discussions on the third review under Pakistan’s Stand-By Arrangement (SBA).

At the conclusion of its work today, the mission issued the following statement:

“The IMF mission held constructive discussions with government and State Bank officials, focusing on Pakistan’s recent economic performance, the outlook for the rest of the fiscal year 2009/10,¹ and policies needed to consolidate macroeconomic stability and reduce poverty. The discussions took place against the background of changing security conditions and delays in donor disbursement of financial aid. The mission welcomed the efforts being made by the authorities to further stabilize the economy, to advance structural reform and lay the foundations for high and sustainable growth. While risks to the economic outlook remain, the early signs of recovery in some sectors, declining inflation, and the improved external position are encouraging.

“Discussions between the authorities and the IMF staff on the third review of the economic program supported by the SBA are scheduled to be completed shortly.”

The SBA of SDR 5.169 billion (about US$7.6 billion) was approved by the Executive Board of the IMF on November 24, 2008 (see Press Release No. 08/303). On August 7, 2009, the SBA was augmented to SDR 7,235.9 million (about US$11,327 million) and extended through end-2010. A first disbursement of SDR 2.067 billion (about US$3.1 billion) was made on November 26, 2008 and a second one of SDR 568.5 million (about US$847 million) on April 1, 2009, after completion of the first program review (see Press Release No. 09/100). The third disbursement of SDR 766.7 million (about US$ 1,200 million) was made on August 7, 2009, after completion of the second program review (see Press Release 09/281). Total disbursements thus far amount to SDR 3,402.6 million (about US$5,327 million).

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¹ Pakistan’s financial year runs from July 1 to June 30.