WASHINGTON: The International Monetary Fund assured Pakistan on Sunday that it was willing to work with the country’s political and business leaders for unlocking its abundant economic potentials.
In a statement issued here, the fund praised the PML-N government’s determination to steer Pakistan towards the ranks of dynamic emerging economies but emphasised the need for a steady implementation of economic reforms to achieve this target.
“Pakistan is facing serious economic challenges. Overall vulnerabilities and crisis risks are high, with subpar growth and unsustainable fiscal and balance of payments positions,” the statement said.
But the fund noted that the government’s home-grown comprehensive economic programme was timely and welcome.
To achieve sustained and inclusive growth, the IMF stressed the need for complementing short-term macroeconomic measures with significant structural and governance reforms.
“The implementation of the recently announced national energy policy will address the long-standing problems in the sector, which constitute the most crucial constraint on growth and have generated large fiscal costs,” the statement said.The IMF also reminded Pakistan of the need to liberalise trade regime, restructure or privatise public sector enterprises and improve the business climate.
“Protecting the most vulnerable from the direct and indirect impacts of fiscal consolidation and price adjustments is a priority. Coverage and benefits of these programmes should be expanded as savings from tariff adjustments and fiscal space are realised,” the statement said.
The suggestions are included in a review the IMF released on Sunday on the conclusion of a fact-finding mission to the country by its director for the Middle East and Central Asia Department, Masood Ahmed.
During his four-day visit to Islamabad, Karachi and Lahore last week, Mr Ahmed met Prime Minister Nawaz Sharif, Finance Minister Ishaq Dar, Governor of the State Bank Yaseen Anwar, members of the government’s economic team, leaders of political parties, chief ministers of provinces, members of parliament, academics, civil society and the media.
In his statement, Mr Ahmed noted that he held “positive and constructive” meetings with Pakistani leaders and officials, focusing on the economic issues and challenges facing the country, the government’s economic reform programme, and the ways the IMF can best support Pakistan to “unlock its abundant economic potentials”.
Mr Ahmed also met representatives of the business community, the bankers’ association, economic thinkers and academics, as well as members of National Assembly and non-governmental organisations.
“In my meeting with the prime minister, I was impressed by his determination to steer Pakistan towards the ranks of dynamic emerging economies, and we agreed that steady implementation of economic reforms would be key to achieving tangible results,” he said.
Mr Ahmed said that the visit gave him an opportunity to stress the commitment of the IMF to supporting Pakistan’s economic reform programme, and the importance that it attached to promoting strong, sustainable, and inclusive growth that could alleviate poverty and improve the living standard for millions of Pakistanis.
The IMF also assured Pakistan that it remained fully committed to supporting its efforts to implement economic reforms through financing, policy advice and technical assistance, including through the recently approved $6.68 billion Extended Fund Facility arrangement.