The International Monetary Fund (IMF) recently completed a third review ofPakistan’s economic performance under a program supported by a Stand-ByArrangement (SBA). The completion of the review enables the immediatedisbursement of an amount equivalent to SDR 766.7 million (about USD1.2 billion), bringing total disbursements under the program to an amountequivalent to SDR 4.17 billion (about USD 6.54 billion).

The Pakistani authorities significant efforts to stay the course onstabilization and structural reform against the backdrop of weak external demandand a difficult security and political environment has helped to bringconfidence in the country thus ensuring IMF support to its internal programsthat will lead to further financial stability. Nevertheless,Pakistan’s vul­nerabilities remain high, due notably to low revenuecollection, large energy subsidies, and weak private sector credit. A crediblefiscal consolidation, supported by flexible interest rate and exchange ratepolicies, further structural reforms, and improved governance will be essentialto reduce these vulnerabilities.

For more detailed information please go to: http://imf.org/…/pr09480.htm