ISLAMABAD – IMF delegation breaks silence over the economic performance ofPakistan under Extended Fund Facility Program.
An International Monetary Fund (IMF) mission, led by Ernesto Ramirez Rigo,visited Islamabad during February 3-13, to initiate discussions on thesecond review of the authorities’ economic reform program supported underthe Extended Fund Facility (EFF) arrangement.
According to the press release issued by the IMF, a considerable progresshas been made in the last few months in advancing reforms and continuingwith sound economic policies.
The statement read that all end-December performance criteria were met, andstructural benchmarks have been completed.
IMF noted down that steadfast progress on program implementation will pavethe way for the IMF Executive Board’s consideration of the review. Inimplementing the program, development and social spending have beenaccelerated, added the press release.
At the conclusion of the visit, Mr. Ramirez Rigo stated:
“The IMF staff team had constructive and productive discussions with thePakistani authorities and commended them on the considerable progress madeduring the last few months in advancing reforms and continuing with soundeconomic policies.
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The mission and the authorities made significant progress in thediscussions on policies and reforms. In the coming days progress willcontinue to pave the way for the IMF Executive Board’s consideration of thereview.
He further added that, “The macroeconomic outlook remains broadly asexpected at the time of the first review. Economic activity has stabilizedand remains on the path of gradual recovery.
The current account deficit has declined, helped by the real exchange ratethat is now broadly in line with fundamentals, while international reservescontinue to rebuild at a pace considerably faster than anticipated,”
”Inflation should start to see a declining trend as the pass-through ofexchange rate depreciation has been absorbed and supply-side constraintsappear to be temporary.” he added.
Moreover, Mr. Ramirez Rigo said that fiscal performance in the first halfof the fiscal year remained strong, with the general government registeringa primary surplus of 0.7 percent of GDP on the back of strong domestic taxrevenue growth. He noted down that the development and social spending hasbeen accelerated.
