Pakistan’s progress is being threatened by coronavirus: IMF MD

Managing Director (MD) of International Monetary Fund (IMF) Ms. Kristalina Georgieva has said that progress of Pakistan was being threatened by devastating effects of coronavirus.

According to a statement issued by IMF Pakistan, Ms. Kristalina Georgieva said that Prime Minister Imran Khan and his government have swiftly approved an economic stimulus package amid coronavirus and providing support to affected families and businesses.

She further said, “State Bank of Pakistan has also adopted a timely set of measures, including a lowering of the policy rate, new refinancing facilities to support the flow of credit, and temporary regulatory relief measures.”

IMF MD said, “To support these efforts and ensure prompt and adequate relief to the people and the economy, Pakistan Government has requested financial assistance under the Fund’s Rapid Financing Instrument (RFI).”

She clarified that this emergency financing will allow the government to address additional and urgent balance of payments needs and support policies that would make it possible to direct funds swiftly to Pakistan’s most affected sectors, including social protection, daily wage earners, and the healthcare system.

“Our team is working expeditiously to respond to this request so that a proposal can be considered by the IMF’s Executive Board as soon as possible,” she added.  

IMF MD said, “In parallel, the authorities have reaffirmed their commitment to the reform policies included in the current arrangement under the Extended Fund Facility (EFF).”

“These reforms are crucial to boost Pakistan’s growth potential to deliver broad-based benefits for all Pakistanis, especially the most vulnerable segments of the population,” she added,

“The Fund stands ready to continue to support the authorities’ efforts to implement much-needed economic and structural reforms aimed at fostering strong and sustainable growth,” she added.

Coronavirus has claimed lives of 10 people in Pakistan and has affected more than 1200 people. Sindh and Punjab are the most affected provinces of the country from coronavirus.