Pakistan: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Pakistan
IMF Staff Country Reports, April 17, 2020
Source details
- Canonical URL
- Pakistan: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Pakistan
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Bibliographic details
- Published: April 17, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513541099.002
Executive summary
- Highlights Pakistan’s Request for Purchase Under the Rapid Financing Instrument (RFI).
- Near-term outlook deteriorating sharply due to coronavirus disease 2019 (COVID-19); health spending increased and social support strengthened.
- Near-term economic impact of COVID-19 expected to be significant, creating large fiscal and external financing needs.
- IMF support intended to:
- provide a backstop against the decline in international reserves;
- provide financing to the budget for targeted and temporary spending increases aimed at containing the pandemic and mitigating its economic impact.
- Government of Pakistan actions:
- swift measures to halt community spread of the virus;
- introduction of an economic stimulus package to accommodate spending needed for the health emergency and to support economic activity.
Key findings and projections
- The near-term economic impact from COVID-19 is expected to be significant (no numeric GDP or growth forecasts provided in the source text).
- Large fiscal and external financing needs have arisen from the shock.
- Health and social spending were increased as immediate policy responses.
- IMF RFI support will act as financial backstop for reserves and targeted budgetary financing.
Policy measures and analysis
- Public health response: measures taken to halt community spread of COVID-19.
- Fiscal response: economic stimulus package aimed at accommodating necessary health spending and supporting economic activity.
- IMF role: rapid financing to address liquidity pressures, support the budget for temporary and targeted spending, and help stabilize international reserves.
Subject classification and keywords
- Subject: COVID-19, Economic sectors, External debt, Fiscal policy, Fiscal stance, Health, Public debt, Public sector
- Keywords: COVID-19, CR, debt, emergency, Executive Board discussion, financing, Fiscal stance, Global, health emergency, IMF emergency financing, IMF support, ISCR, liquidity pressure, Public sector, reform effort, SBP reserve
Content in this bundle
- 1pakea2020001