WASHINGTON: The International Monetary Fund (IMF) Managing Director Kristalina Georgieva expressed optimism about Pakistan’s economic stability, assuring that the country will not default on its debt.
She hoped that Pakistan would not face situations similar to those of Sri Lanka and Ghana, as the country has met all the necessary requirements for receiving a critical $1.1 billion bailout from the international donor.
During a news briefing in Washington, Georgieva stated that Pakistan wouldn’t default, and it is best not to get there.
The IMF chief also expressed her confidence in the implementation of what has been already agreed upon by the Pakistani authorities, indicating that completing the current program successfully is possible.
Responding to a question about climate change’s impact on Pakistan’s economy, Georgieva recalled the 2011 flood in Pakistan and said that the recent one is much more dramatic.
She advised that Pakistan should establish a policy framework that makes it possible to avoid such catastrophic events in the future.
IMF and Pakistani officials discussing financial support plan
The IMF chief further stated that her organization and Pakistani officials were discussing how to support Pakistan financially, providing assurances so that the current program can be completed.
Pakistan has been facing the worst economic challenges for several years, and the COVID-19 pandemic further exacerbated the situation.
In July 2019, the country entered into an Extended Fund Facility agreement with the IMF, securing a $6 billion bailout package.
However, the pandemic caused delays in the disbursement of funds, and Pakistan has been seeking additional loans to stabilize its economy.
The IMF chief expressed hope for Pakistan’s economic stability and urged the authorities to focus on implementing effective policies that can prevent future financial crises.
