ISLAMABAD – Pakistan is coming up with the innovative and out of box ideasto stay away from the IMF bailout package and keep the fiscal deficit to aslow as possible.
Pakistan is planning ban on imports of luxury cars, smartphones and cheesein a wide-ranging strategy.
The new government seems determined to avoid another IMF bailout.
The EAC held its first session last week, chaired by Finance Minister AsadUmar, who took office last month.
A lull in Pakistani exports and a relative spike in imports has led to ashortage of dollars in the economy, putting pressure on the local currencyand dwindling foreign currency reserves.
That has prompted most financial analysts to predict Pakistan will turn tothe IMF for its 15th bailout since the early 1980s.
But new Prime Minister Imran Khan has criticised a culture of dependencyand his party´s officials have expressed concerns that the reforms andausterity the IMF might demand would strangle promised government spending.
Ashfaque Hasan Khan, a university professor who is one of more than a dozenEAC members, told Reuters that during Thursday´s meeting, the focus was onoutside-the-box ideas that would help curb imports.
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“I didn´t find any member (who) suggested that Pakistan should go to theIMF because there is no other alternative,” he said.
“We need to take some actions. ´Do nothing´ scenario is unacceptable. “Umarcould not be reached for comment on the EAC meeting.
He recently told the Senate that while Pakistan needs to meet a $9 billionfinancing requirement, the IMF should only be a fallback option.
Khan said the more radical steps discussed were a year-long ban on importsfor cheese, cars, cell phones and fruit that could “save some $4-5 billion”.
A push on exports could generate up to $2 billion in extra inflows, headded.
