The International Monetary Fund has termed the stand-by agreement with Pakistan as an ‘anchor’ that will help the government’s immediate efforts for stability.

During a press briefing, IMF’s spokesperson Julie Kozack said that solving the economy’s long-term problems would require structural reforms by the government.

“The new program will anchor the authorities’ immediate efforts to stabilize the economy,” Kozack said.

“Of course, resolving Pakistan’s structural challenges will likely require continued reforms over the medium term to underpin the needed economic transformations, to strengthen inclusive growth prospects, and to create an environment conducive to renewed private capital inflows,” Kozack added.

She added that while the stand-by agreement was ‘relatiely short’ it provides the government of Pakistan with time to make sure the economy is stabilised and immediate funding needs are fulfilled.

“Steadfast policy implementation is critical in the period ahead,” Kozack added.

However, IMF spokesperson also did not rule out the chance of another deal with Pakistan in the future just because the latest deal is spread over a shorter tenure than before.

“Of course, we at the IMF, we always stand ready to work with Pakistan and the Pakistani government on these efforts to restore sustainability and an economic stability.”