IMF warns of 'exceptionally high' risks for Pakistan, calls for additional aid beyond election cycle

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macroeconomic outlook and highlights the need for further financial support to address the country's cash-strapped situation, PTI reported this citing The Dawn newspaper. The report is founded on the Memorandum of Economic and Fiscal Policies (MEFP), which was signed by Pakistan's Finance Minister Ishaq Dar and State Bank Governor Jameel Ahmed. The fund said, “Resolving Pakistan’s structural challenges, including long-term BOP [balance of payments] pressures, will require continued adjustment and creditor support beyond the current programme period." Last week, the IMF approved the USD 3 billion bailout program for Pakistan.

The financial assistance aims to support the government's initiatives in stabilizing the country's struggling economy. “A possible successor arrangement could help anchor the policy adjustment needed to restore Pakistan’s medium-term viability and capacity to repay," the report said. The IMF assessment stressed that Pakistan’s economic challenges were complex and multifaceted, and risks were exceptionally high.

“Addressing them requires steadfast implementation of agreed policies, as well as continued financial support from external partners. Consistent and decisive implementation of programme agreements will be essential to reduce risks and maintain macroeconomic stability," it said. According to the report, the government has committed to an international agreement to promptly inform about a ₹5 per unit rise in electricity prices and a more than 40 per cent increase in gas rates.