Deal to attract investment: Hafeez

ISLAMABAD: Finance Minister Hafeez Shaikh has said that the agreement reached between the International Monetary Fund (IMF) and the government would facilitate Pakistan's economic growth while attracting foreign investment.

"I would like to share that yesterday the IMF and Pakistan reached an important agreement, which will facilitate Pakistan's investments, exports, and economic growth," said Shaikh while talking to local media on Wednesday.

The finance minister was of the view that the latest agreement would make Pakistan an attractive destination for international investors and the gobal capital markets. The statement comes after the IMF team led by Ernesto Ramirez Rigo, concluded virtual discussions with the Pakistani authorities and reached a staff-level agreement on the second to fifth reviews of the authorities' reform programme supported by the IMF's 39-month Extended Fund Facility (EFF) arrangement for SDR 4,268 million (about $6 billion), as uploaded on the IMF website.

This agreement is subject to the approval of the IMF's Executive Board. The reviews' completion would release around $500 million. The Fund issued a statement saying that the package strikes an appropriate balance between supporting the economy, ensuring debt sustainability, and advancing structural reform. It further stated that the COVID-19 shock temporarily disrupted Pakistan's progress under the EFF-supported program. However, the authorities' policies and allowing higher than expected COVID-related social spending, have been critical in supporting the economy and saving lives and households.