WASHINGTON: The IMF Executive Board’s decision to disburse around $700 million to Pakistan reflects a positive review of the country’s economic reform programme. While economic activity has stabilised, challenges persist, contingent on the effective implementation of sound policies.

Macroeconomic conditions have shown improvement, with a projected two per cent growth in FY24. The fiscal position strengthened in 1QFY24, achieving a primary surplus of 0.4pc of GDP, driven by strong revenues. Inflation, although elevated, is expected to decline with appropriately tight monetary policy to 18.5pc by end-June 2024.

Gross reserves of the State Bank of Pakistan (SBP) increased to $8.2 billion in December 2023, and the exchange rate remained stable.

IMF’s Deputy Managing Director Antoinette Sayeh emphasises the need for “continued........

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