—– Lauds IMF’s role in country’s economic growth
By Eman Alam
ISLAMABAD: President Asif Ali Zardari on Friday said that the IMF program had played a supportive role in stabilizing Pakistan’s economy and would also contribute to fostering economic growth in the country.
The president, in a meeting with a delegation of the International Monetary Fund (IMF) led by Director of the Middle East & Central Asia Department, Jihad Azour, highlighted the IMF’s positive role in promoting economic development in developing nations.
Discussing Pakistan’s current economic situation and the ongoing IMF program, he also acknowledged and appreciated the IMF’s contribution to Pakistan’s economic progress. The delegation members expressed satisfaction over Pakistan’s efforts for economic reforms and implementation of the IMF program, which they observed was progressing in the right direction. The delegation members emphasized that the program had assisted in reducing inflation and fiscal deficit and strengthening Pakistan’s foreign exchange reserves.
President Zardari thanked the IMF for its continued support and cooperation with Pakistan, and also appreciated the finance ministry for its efforts to improve the national economy.
The meeting was also attended by Federal Finance Minister Senator Muhammad Aurangzeb, Senator Saleem Mandviwalla, and senior government officials.
Earlier, International Monetary Fund (IMF) Director of Communications, Julie Kozack, firmly responded to an Indian journalist’s provocative question regarding funding for Pakistan during the press briefing
During a press briefing, Indian journalist had asked Kozack whether Pakistan could use IMF funds to support cross-border terrorism.
Julie Kozack categorically rejected the notion, stating that the IMF loan program is strictly for supporting Pakistan’s foreign exchange reserves and not for budgetary support or any government expenditure.
She clarified that the IMF loan disbursement is meant to stabilize Pakistan’s balance of payments and is deposited directly into the State Bank of Pakistan’s reserves, not the federal treasury.
Julie Kozack further said that the IMF’s conditions prohibit the Government of Pakistan from borrowing from the central bank, and current borrowing from the State Bank stands at zero.
Earlier, Pakistan received $24 billion from external sources during the first ten months of the ongoing FY2024- 25, according to official documents released by the Economic Affairs Division.
According to the report, the inflows include $14.1 billion comprising funding from the International Monetary Fund (IMF) and the rollover of deposits by friendly countries such as Saudi Arabia, the United Arab Emirates, and China.
The documents reveal that Pakistan secured over $6 billion in external funds during the ten-month period, including $5.92 billion in loans and $583 million in grants.
These figures are separate from the $2.1 billion disbursed by the IMF during the same period, which is not counted in the primary disbursement total.
According to the Economic Affairs Division, Pakistan received $2.97 billion from multilateral financial institutions between July and April, while bilateral lenders, including China and the United States, provided $370 million.
