IMF agreement will stabilize Pakistan’s economy, says Moody’s

Economic activity will be affected in short, Pakistan has to increase its income, says international rating agency

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Moody’s, an international organization that ranks the economy of countries and institutions, says that the International Monetary Fund (IMF) agreement will stabilize Pakistan’s economy.

In its statement, Moody’s said that the IMF agreement will stabilize the economy and it will slightly improve the financial capacity of the government.

Moody’s says that economic activity will be affected in the short term, so Pakistan will have to bring reforms for long-term stability. The statement further said that Pakistan has to increase its income while Pakistan also needs to bring tax reforms.

The impact of the IMF agreement has started to be seen immediately after Eid, at the beginning of the business week today, the 100 index of the Pakistan Stock Exchange increased by more than 2300 points.

Apart from this, after falling five rupees in the open market on Monday, the buying and selling of the American currency continues at Rs 285.

It should be noted that a staff-level agreement has been signed between Pakistan and the IMF for the release of $ 3 billion.

The IMF said that the executive board meeting will be held in mid-July, the agreement will reduce the pressure of Pakistan’s external payments, while the provision of funds for the social sector will improve.

The statement said that the agreement will increase tax revenue in Pakistan and lead to financial discipline; it will also ensure energy reforms.

The financial institution said that after the agreement, the exchange rate in Pakistan will be determined according to the market; increasing tax revenue will increase funding for the development of the people.