Pakistan: Second and Final Review Under the Stand-by Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Pakistan

IMF Staff Country Reports, May 10, 2024

Source details

Canonical URL

Pakistan: Second and Final Review Under the Stand-by Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Pakistan

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: May 10, 2024
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400275586.002

Program objectives and overall assessment

• Presents Pakistan’s Second and Final Review under the Stand-By Arrangement (SBA).
• Objective: move Pakistan from stabilization to a strong and sustainable recovery through continued policy and reform efforts.
• Core policy pillars emphasized:
  • strict adherence to fiscal targets while protecting the vulnerable;
  • a market-determined exchange rate to absorb external shocks;
  • broadening structural reforms to support stronger and more inclusive growth.
• Macroeconomic conditions have improved over the course of the program.

Energy sector developments and recommendations

• Findings:
  • The authorities have stabilized the energy sector’s circular debt over the course of the SBA through timely tariff adjustments and enhanced collection efforts.
• Policy recommendations:
  • Continue timely tariff adjustments and enhanced collection efforts.
  • Undertake cost-side reforms to address the sector’s underlying issues and viability.

Fiscal policy, social protection, and inclusive growth

• Findings:
  • Fiscal consolidation remains a central requirement to sustain stabilization.
• Policy recommendations:
  • Strict adherence to fiscal targets while protecting vulnerable populations.
  • Continue protection of the most vulnerable through an adequately financed Benazir Income Support Program.

Structural reforms and governance

• Priority reforms highlighted:
  • Accelerate structural reforms to achieve strong, long-term inclusive growth and job creation.
  • Advance reform of state-owned enterprises (SOEs), including ensuring that all SOEs fall under the new policy framework.
  • Strengthen governance and anti-corruption institutions.
  • Continue to build climate resilience.

Content in this bundle

• IMF staff report: EXECUTIVE SUMMARY
  • IMF staff report: EXECUTIVE SUMMARY (Markdown version)
  • IMF staff report: EXECUTIVE SUMMARY (PDF)