NEW YORK: The International Monetary Fund (IMF) has said that it “stands ready” to hold a mission for the second review of the Stand-By Arrangement with Pakistan after a new cabinet is formed.

“The focus, therefore, is currently on completion of the current Stand-By programme, which ends in April 2024. We look forward to working with the new government on policies to ensure macroeconomic stability,” IMF Director of Communications Julie Kozack told journalists at a news briefing on Thursday.

Kozack noted that the IMF Executive Board had approved the first review of Pakistan’s Stand-by Arrangement (SBA) on January 11, with disbursements totaling approximately $1.9 million.

The SBA aims to stabilise the economy, particularly focusing on safeguarding vulnerable segments of the population.

Highlighting the caretaker government’s efforts, Kozack praised their commitment to fiscal targets, the protection of social safety nets, and a tight monetary policy to control inflation.

She also acknowledged timely adjustments in tariffs to enhance the energy sector’s viability.

Looking ahead, Kozack emphasised the IMF’s readiness to conduct a mission for the second review of the Stand-By arrangement after the formation of a new cabinet. The current Stand-By programme concludes in April 2024, and the IMF anticipates working closely with the new government to ensure macroeconomic stability.

Responding to a question regarding political instability, Kozack refrained from commenting on politics. Instead, she reiterated the IMF’s commitment to collaborating with the new government and expressed optimism about fostering stability for the benefit of the people of Pakistan.