The International Monetary Fund stated that it is awaiting the assessment reports from the World Bank and UNDP as well as the economic destruction brought on by the country’s severe flooding before determining how it might assist Pakistan.
According to Geo, the international lender announced that as part of the preparations for the upcoming review, it will also dispatch a delegation the following month after the annual meetings.
But the IMF made it clear that it would hold off until the UNDP and World Bank completed their assessments of the damages.
At a news conference in Washington on Thursday, Jihad Azour, the IMF’s Director of the Middle East and Central Asia Department, stated that “We were saddened by the loss of human as well as livelihood in Pakistan with the flood, and we present, and we reiterate our condolences to the people of Pakistan. The Fund has been very supportive of Pakistan over the last few years. We have a programme with Pakistan that has been extended and increased in size.
According to Azour, the Fund took these actions to provide Pakistan more flexibility during the Covid-19 crisis in order to help the government deal with the confluence of shocks.
When talking about subsidies, the director remarked “Targeted subsidies that promote certain products have not been found to be highly beneficial. It has shown to be extremely regressive, “added he.
Azour said that the Fund urges Pakistan and other nations to stop giving out ineffective subsidies that waste money. He further emphasised that the IMF supports nations in allocating these resources to those who are in most need.
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