IMF Staff Concludes Visit to Pakistan

IMF News, May 25, 2022

Source details

Press Release No. 22/170
Date: May 25, 2022
Mission lead: Mr. Nathan Porter
Mission engagement: held both in-person and virtual discussions in Doha, Qatar with the Pakistani authorities during May 18-25
Purpose: discussions on policies to secure macroeconomic stability and support sustainable growth in Pakistan
Administrative note: End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
IMF Communications Department — Media relations contact: PRESS OFFICER: Randa Elnagar; Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson

The mission held "highly constructive discussions with the Pakistani authorities aimed at reaching an agreement on policies and reforms that would lead to the conclusion of the pending seventh review of the authorities’ reform program, which is supported by an IMF Extended Fund Facility arrangement."
"Considerable progress was made during the mission, including on the need to continue to address high inflation and the elevated fiscal and current account deficits, while ensuring adequate protection for the most vulnerable."
The team noted deviations from the policies agreed in the last review, "partly reflecting the fuel and power subsidies announced by the authorities in February."

Urgency of concrete policy actions, including:
- removing fuel and energy subsidies
- finalizing the FY2023 budget to achieve program objectives
The mission welcomed "the further increase in policy rates implemented on May 23" as a positive step in addressing inflation.
Continued dialogue and close engagement: "The IMF team looks forward to continuing its dialogue and close engagement with Pakistan’s government on policies to ensure macroeconomic stability for the benefit all of Pakistan’s citizens."

IMF Staff Concludes Visit to Pakistan — Press Release No. 22/170