ISLAMABAD – International Monetary Fund’s (IMF) Resident Representative forPakistan, Ms. Teresa Daban Sanchez on Tuesday during the first review ofPakistan’s economic performance under the Extended Fund Facility (EFF) itwas noted the overall macro-economic performance remained satisfactory.
Revenue collections have increased substantially, with improvement in thetrade deficit and net foreign assets, she said this during a conversationwith relevant stakeholders on first quarterly review of 39-montharrangement made under the EFF for Pakistan organised by the SustainableDevelopment Policy Institute (SDPI) here.
Teresa Daban said that there was a successful transition towards amarket-based exchange rate regime by the government which helps increaseforeign exchange reserves.
The government was also successful in controlling expenditures with thehelp of new public finance management law and avoids borrowing from thecentral bank. However, economic activity was softening as the economyadjusts to a new stabilisation policies, she added.
Ms Daban said, “The authorities’ steadfast commitment to the program anddecisive policy and reform implementation could help mitigate theseeconomic challenges.”
She said that as per Memorandum of Economic and Financial Policies (MEFP)the government was committed to strengthening the tax administration andadvancing the tax policy by eliminating exemptions by the FY2021 and ajoint working group on harmonization of GST (end-March 2020).
Read Top Stories
Regarding poverty reduction and social protection actions as envisaged inMEFP, the authorities are committed to higher spending by expanding PKR 180billion BISP allocation and better targeting by updating the NationalSocio-economic Registry (NSER) (end 2020).
Responding to a question, she said that the IMF does not dictate economicpolicies of the government, instead IMF help the government in providingtechnical support in order to take the right decisions.
Executive Director, SDPI, Dr. Abid Qaiyum Suleri said the program and itsreview will be determining the way forward and the short-term, medium-termand long-term vision of the government with regards to the economic policymaking for Pakistan.
