Kristalina Georgieva, Managing Director (MD) of the International Monetary Fund (IMF), praised the Pakistani government for “maintaining economic stability and timely implementation of reforms.”
Late on Friday, Georgieva shared on social media platform X, formerly known as Twitter, that she had met with Caretaker Prime Minister Anwaar-ul-Haq Kakar at COP28. In her post, she highlighted discussions on the commendable progress achieved by the government in maintaining economic stability and the timely implementation of planned reforms.
Met with
— Kristalina Georgieva (@KGeorgieva) December 1, 2023Prime Minister @anwaar_kakar at #COP28. We discussed commendable progress made by the government to maintain economic stability and timely implementation of planned reforms. pic.twitter.com/P766NyFyyv
On Friday, the Caretaker Prime Minister engaged in informal discussions with several world leaders during the COP28 summit. Notably, there was an interaction with IMF Chief Georgieva. This interaction comes at a crucial time for Pakistan, currently under a caretaker government and involved in an ongoing IMF program.
In July, Pakistan entered into a Stand-By Arrangement (SBA) with the IMF, securing $1.2 billion as the initial tranche of the $3 billion program. This agreement not only provided immediate financial support but also facilitated inflows from other international partners, including Saudi Arabia, UAE, and the World Bank, bolstering the country’s foreign exchange reserves.
The IMF program has afforded Pakistan some economic relief, offering a respite from the historical boom-and-bust cycles. Last month, the IMF staff and Pakistani authorities reached a staff-level agreement on the first review of the SBA program, with the government anticipating approval from the IMF’s executive board in December.
IMF Chief Georgieva, in a recent interview, commended Pakistani authorities for adhering to the IMF program despite challenging circumstances. She highlighted a significant concern regarding Pakistan’s low tax collection, with the tax-to-GDP ratio at 12%, emphasizing the need to raise it to at least 15% for sustained revenues. Georgieva urged the authorities to focus on tax collection to ensure financial sustainability.
