IMF Staff Country Reports

This paper presents Pakistan’s Request for a Stand-By Arrangement. Pakistan’s’ economic reform program aims to support immediate efforts to stabilize the economy and guard against shocks while creating the space for social and development spending to help the people of Pakistan. Steadfast policy implementation will be critical for Pakistan and the success of the program. This will require greater fiscal discipline, a market-determined exchange rate to absorb external pressures, and further progress on reforms related to the energy sector, climate resilience, and the business climate. A market-determined exchange rate is also critical to absorbing external shocks, reducing external imbalances, and restoring growth, competitiveness, and buffers. Accelerating structural reforms to build climate resilience, enhance safety nets, strengthen governance, including of state-owned enterprises, and improve the business environment by creating a level playing field for investment and trade are necessary for job creation and raising inclusive growth.