IMF praises Pakistan's commitment to economic progress

The finance ministry of Pakistan released a statement on Thursday announcing that the International Monetary Fund’s (IMF) review mission had met with Pakistani authorities in Islamabad and had commended the government on its progress towards economic recovery.

A caretaker government is in place in the South Asian country as a result of an IMF loan programme that was approved in July and prevented a sovereign debt default.

Pakistan received the first installment of $1.2 billion from the IMF in July as part of the $3 billion standby agreement (SBA).

“Nathan Porter, IMF Mission Chief, appreciated the government’s commitment to meeting the first-quarter targets, and commended the government’s efforts and measures taken in some critical areas,” said the ministry.

The IMF could not be immediately reached for comment and has not released a statement regarding the meeting.

According to the ministry’s statement, Pakistan’s tax body has been reforming and taking measures, and the government has been discussing its approaches to resolving its circular debt problem. Caretaker Finance Minister Shamshad Akhtar also briefed the IMF mission on fiscal measures.

One type of public debt that accumulates in the power industry as a result of subsidies and unpaid bills is known as circular debt.

(With agency inputs)