A much-needed breath of fresh air at last. It is encouraging that Pakistan has recently secured the IMF staff-level agreement. The news symbolizes confidence in the nation’s economic trajectory and incites optimistic sentiments in all sectors, particularly the stock market. The task is only partially completed, though, as budgetary consolidation still needs to be done.
The IMF has recognized Pakistan’s economic stabilization efforts. The international lender approved $1 billion under the Extended Fund Facility because lower inflation and better reserves demonstrate the efforts made to improve economic indicators. Coupled with another $1.3 billion accessible under the Resilience and Sustainability Facility, the cash is likely to assist sustain liquidity for some time.
