UNITED NATIONS: International Monetary Fund (IMF) chief Christine Lagarde Tuesday expressed appreciation for the “tough but essential” steps by Pakistan government to stabilize the economy at a meeting with Prime Minister Nawaz Sharif.

During the meeting, which took place on the sideline of the UN General Assembly, the prime minister briefed the IMF managing director about his commitment of implementing the structural reforms and meeting the growth and inflation targets in line with his overall vision of reforming the economy.

In this context, the prime minister underlined the priority areas of his economic policy including broadening the tax net, privatisation reforms in the public sector entities and managing the fiscal deficit.

While appreciating those steps, Lagarde said the extended fund facility of $6.64 billion, approved by the IMF board, should help Pakistan improve the medium term growth outlook and help move towards sustainable fiscal and macro-economic stability.

Despite warning Pakistan of worse economic growth next year due to strict austerity measures built into the rescue loan, the fund had assured last week that it was willing to work with the country’s political and business leaders for unlocking its abundant economic potentials.