IMF board sees Pakistan economic reforms on right track bearing fruit

IMF board sees Pakistan economic reforms on right track bearing fruit.

Executive Board of the IMF made this observation following completion of its first review of Pakistan’s economic performance under the Extended Fund Facility.

Specially it views Pakistan’s economic reforms program is on track and has started to bear fruit.

Pakistan implementing IMF policy

Furthermore, the world lender said that Pakistani authorities’ decisive policy implementationis helping to preserve economic stability.

It also noted that transition to a market determined exchange rate has been orderly and inflation has started to stabilize, mitigating the impact on the most vulnerable groups of the population.

Moreover, the IMF also appreciated Pakistan’s commitment to expanding social safety nets, reducing poverty and narrowing the gender gap.

Meanwhile, IMF’s First Deputy Managing Director David Lipton acknowledged Pakistan’s plan in this regard. Particularly, he referred to Pakistan’s comprehensive plan to address the accumulation of arrears in the power sector.

He also pointed to ongoing efforts to further improve the business environment, strengthen governance and foster private sector investment.

IMF board sees Pakistan economic reforms

However, David Lipton said reforms of the state owned enterprises will help put Pakistan’s public finances on a sustainable path. It will have positive spillovers by leveling the playing field and improving the provision of services, he said.

The completion of the review will allow Pakistan to draw about 452.5 million dollars from the world lender bringing the total disbursements to 1440 million dollars.

GTV