The International Monetary Fund (IMF) on Saturday expressed its lack of confidence in the government’s economic policies, as fund representative told reporters that the IMF did not see improved budgetary and external account position of Pakistan and that could create difficulty in payment of external debt in the long run. Adnan Mezari said Pakistan’s ailing economy badly needed immediate remedial measures, as balanced current account position could be effected by the financial slowdowns around the world and Pakistan’s authorities had the ability to manage the internal and external accounts through corrective measures. Mezari, IMF Asia pacific director, was speaking at a press briefing with Finance Minister Dr Abdul Hafeez Shaikh. Dr Abdul Hafeez Shaikh said Pakistan had achieved positive economic growth during the first four months, as the country’s exports had reached $6 billion, twenty percent more than in the same period last fiscal year. He said the country had recorded 23 percent increase in remittances with $4.2 billion and 28 percent increase in tax collection at Rs 509 billion in the first four months of the current fiscal. Shaikh said during the recent article IV consultation with IMF, both long and short term policies to revamp the economy had been taken up. “Long term growth strategy focuses on enhancing the efficiency of civil servants, attracting investments, development of agriculture and industrial output and broadening the tax base of the economy. Reforms have been initiated in power distribution and power generation companies,” he said, adding that the boards of directors of power distribution companies had been reformed and a process was underway to appoint CEOs to power generation companies. The finance minister said Pakistan enjoyed good relationship with IMF authorities and considered IMF consultations important for initiating economic reforms in the country. He hoped that the current phase of growth in external resources would continue and the current fiscal year would end up at a manageable fiscal and current account deficit. Mezari said Pakistan needed to reform its energy sector and improve the productivity and fiscal management of public sector institutions for long term macroeconomic stability of the country.
