Some progress

THE finalisation of a deal between Pakistan and the IMF on the first Extended Fund Facility programme review and a new arrangement that will enable Islamabad to access additional funds under the Resilience and Sustainability Facility is a much-needed shot in arm for a wobbly economy. It should also put an end to speculations engendered by departure of the IMF team without signing the customary staff-level agreement. The statement issued by the IMF mission chief after the staff-level agreement shows that the lender is satisfied with the progress Pakistan has made on the benchmark programme targets. “Over the past 18 months, Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment. While economic growth remains moderate, inflation has declined to its lowest level since 2015, financial conditions have improved, sovereign spreads have narrowed significantly, and external balances are stronger,” the statement elaborates.