- IMF official applauds Pakistan’s economic policies, says monetary and fiscal policies, strong capital inflows, robust remittances, lower international oil prices working out fine
The International Monetary Fund (IMF) has appreciated “prudent policies” of Pakistan’s government for making improvement in the country’s economy.
“Pakistan’s economy is improving, helped by prudent monetary and fiscal policies, strong capital inflows, robust remittances, and lower international oil prices”, said IMF Middle East and Central Asia Department Director Masood Ahmed, in a statement at the conclusion of his four-day visit to Pakistan.
The IMF director said the authorities have made progress with consolidating macroeconomic stability, strengthening public finances, and re-building foreign exchange buffers.
As a result, he said immediate crisis risks have greatly receded, economic growth is gaining strength, inflation is declining, and macroeconomic vulnerabilities are gradually addressed.
During his visit, Masood Ahmed met Prime Minister Nawaz Sharif, Finance Minister Senator Ishaq Dar, Governor of the State Bank of Pakistan Ashraf Wathra, Punjab Chief Minister Muhammad Shahbaz Sharif, members of Pakistan’s economic team, as well as members of parliament, academics, and the business community.
“It has been a great pleasure to visit Pakistan and hold productive and engaging discussions with the prime minister, the country’s economic team, members of parliament, political and provincial leaders, representatives of the business community, as well as economic thinkers and academics,” he added.
He further said the current improved economic and financial situation presented a unique opportunity for Pakistan to reinforce and build on recent stability gains to work towards achieving higher, sustainable and inclusive economic growth.
“This will require further bolstering government revenues through broadening the tax base and improving compliance in order to generate the resources that will allow for further reducing public debt while increasing spending in priority areas such as public investment, health and education,” he remarked.
He said it would also require a further build-up of international reserves, which would strengthen Pakistan’s financial resilience while supporting exports.
Other key priorities included stemming the accumulation of arrears and addressing long-standing imbalances in the energy sector, restructuring and privatizing public sector enterprises; moving ahead with investment climate and trade policy reforms; and continuing with financial sector reforms to improve resilience and financial inclusion, he said.
In this context, he said it would be critical to protect the most vulnerable from the direct and indirect impacts of economic reforms through continued expansion of targeted social assistance.
“The IMF remains fully committed to supporting the authorities’ efforts through financing, policy advice and technical assistance, including through the ongoing Extended Fund Facility (EFF) arrangement,” the director remarked.
He said firm implementation of the authorities’ reform agenda would be crucial to overcome the economic imbalances, build investors’ confidence, and move the country on a higher growth path. “We are looking forward to a successful conclusion of the EFF arrangement,” he added.
