Pakistan's economic reform program on track: IMF.

ISLAMABAD -- The Executive Board of the International Monetary Fund (IMF) has completed the first review of Pakistan's economic performance under the Extended Fund Facility (EFF) saying that Pakistan's economic reform is quite on track.

The completion of the review will allow the authorities to draw US$ 452.4 million, bringing total disbursements to $1.44 billion, said a press release issued by the IMF here on Friday.

The Executive Board approved the 39-month, SDR 4,268 million (about $6 billion at the time of approval of the arrangement, or 210 percent of quota) EFF for Pakistan on July 3, 2019.

Following the Executive Board's decision, First Deputy Managing Director and Acting Chair David Lipton stated 'Pakistan's program is on track and has started to bear fruit. However, risks remain elevated. Strong ownership and steadfast reform implementation are critical to entrench macroeconomic stability and support robust and balanced growth'.

He said the authorities were committed to sustaining the progress on fiscal adjustment to place debt on a downward path.

The planned reforms include strengthening tax revenue mobilization, including the elimination of tax exemptions and loopholes, and prudent expenditure policies. Preparations for a comprehensive tax policy reform should start early to ensure timely implementation. Enhanced social safety nets will help alleviate social costs and build support for reforms.

'The flexible, market-determined exchange rate remains essential to cushion the economy against external shocks and rebuild reserve...