ISLAMABAD – Economic experts have believed that the Extended Fund Facilitysigned between Pakistan and International Monetary Fund (IMF) would leadtowards economic stability of the country and help promote growth.
The government must have to properly execute the IMF programme with fullspirit to pursue their economic goals for economic growth, Former SecretaryFinance, Dr Waqar Masood told APP here on Monday.
He said the government should go for structural changes in the country’seconomy by introducing reforms in various sectors including tax and energysector reforms.
Dr Waqar Masood hoped that the current democratic regime would achieve thegoal of economic growth in the coming few years by following economicpolicies.
He said that after success in IMF programme, the doors of other lendingagencies including World Bank (WB), Asian Development Bank (ADP) and otherfinancial institutions would be opened for Pakistan and more foreignexchange reserves would come to the country.
Meanwhile Vice- President Federation of Pakistan Chamber of Commerce andIndustry (FPCCI) and renowned industrialist Dr Mirza Ikhtiar Baig said thatPakistan had no other option instead of going to IMF for EFF program andnow the government had the opportunity to follow the proper mechanism foreconomic growth.
He said that after success in the IMF programme, the government would haveto get more opportunity from World Bank and Asian Development Bank (ADB)and get $ 3 billion loans on easy instalment.
He said that the government had an aggressive economic agenda and wanted toreduce the circular debt to zero by 2020 to remove the deficits.
President Senior Vice President of SAARC, Chamber of Commerce and industryIftikhar Ali Malik said that the success of IMF programme would open newopportunities for the government to get the confidence of internationalinvestor also.
Now the country’s economy was regulated by the IMF for enhancing thecredibility of the local economy.
Replying to a question, he hoped that Pakistan would achieve the goal ofeconomic stability in the coming two years.
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Earlier in a statement, the Islamabad Chamber of Commerce and Industry(ICCI) had expressed its reservations over the programme with IMF sayingthat this would create problems for the business community.
Pakistan and the International Monetary Fund (IMF) had reached an agreementlast night under which the Fund would provide $6 billion Extended FundFacility over the period of three years.
Talking to state media after the talks between the technical team of theGovernment of Pakistan and the IMF Mission, the advisor to Prime Ministeron Finance Abdul Hafeez Shaikh said after months of discussions, a loanprogramme had been finalized with the International Monetary Fund.
He said Pakistan would get $6 billion assistance in three years, while anadditional amount of two to three billion dollars was likely to come fromWorld Bank and Asian Development Bank on fewer interest rates.
Dr Abdul Hafeez Shaikh said the IMF programme would be implemented afterits formal approval by the Fund’s board.
The agreement would improve the debt situation and send a positive signalto the world to attract foreign investment, he added.
The advisor said the IMF programme would provide an opportunity to bringstructural changes to handle issues pertaining to loss-making state-ownedenterprises, exports, and to enhance revenue.
He said the country’s economy was passing through hard times for the lastcouple of years, stressing the need for structural reforms to promotesustainable growth.
The subsidies would have to be withdrawn from the rich segments of thesociety, he said, adding the government was determined to provide relief tothe vulnerable segments. The burden of electricity tariff increase wouldnot be put on the poor, he said.
