Bailout to Pakistan economy: IMF Chief assures support after meeting PM Imran Khan

The Managing Director of the International Monetary Fund (IMF) Christine Lagarde has said that the multilateral institution stands ready to support Pakistan which is facing economic headwinds.

She said this after her meeting with Pakistani Prime Minister Imran Khan who is in the United Arab Emirates to participate in the global governance summit 2019 in Dubai.

Lagarde after the meet said, “I reiterated that the IMF stands ready to support Pakistan. I also highlighted that decisive policies and a strong package of economic reforms would enable Pakistan to restore the resilience of its economy and lay the foundations for stronger and more inclusive growth."

She said during the meet with Khan which was "good and constructive" they discussed recent "economic developments and prospects for Pakistan in the context of ongoing discussions toward an IMF-supported program."

She further added, "As emphasized in the new government’s policy agenda, protecting the poor and strengthening governance are key priorities to improve people’s living standards in a sustainable manner.”

Pakistan is in talks with IMF for a bailout programme. If agreed, this will be the 13th bailout the south Asian country got since the 1980s. The last time Pakistan govt bailout from IMF was in 2013.

A statement was also released by Pakistan's finance ministry which said Pakistani Prime Minister "appreciated IMF’s support to Pakistan and shared his vision for nation-building", reiterating that Pakistan government is committed "for undertaking structural & governance reforms and strengthening social protection in the country."

Both sides also agreed to continue the "deliberations between Pakistani authorities and IMF staff" to "finalize an agreement on the contours of a program."

The global rating agency Standard & Poor's (S&P) downgraded Pakistan from B to B- with a stable outlook in the first week of February due to diminished growth prospects. Pakistan also got $3 million in loans from UAE to support its economy.