IMF reveals the first review of Pakistan Economic performance, it's positive development for Islamabad

IMF reveals the first review of Pakistan Economic performance, it's positive development for Islamabad

ISLAMABAD - International Monetary Fund’s (IMF) Resident Representative for Pakistan, Ms. Teresa Daban Sanchez on Tuesday during the first review of Pakistan’s economic performance under the Extended Fund Facility (EFF) it was noted the overall macro-economic performance remained satisfactory.

Revenue collections have increased substantially, with improvement in the trade deficit and net foreign assets, she said this during a conversation with relevant stakeholders on first quarterly review of 39-month arrangement made under the EFF for Pakistan organised by the Sustainable Development Policy Institute (SDPI) here.

Teresa Daban said that there was a successful transition towards a market-based exchange rate regime by the government which helps increase foreign exchange reserves.

The government was also successful in controlling expenditures with the help of new public finance management law and avoids borrowing from the central bank. However, economic activity was softening as the economy adjusts to a new stabilisation policies, she added.

Ms Daban said, “The authorities’ steadfast commitment to the program and decisive policy and reform implementation could help mitigate these economic challenges.”

She said that as per Memorandum of Economic and Financial Policies (MEFP) the government was committed to strengthening the tax administration and advancing the tax policy by eliminating exemptions by the FY2021 and a joint working group on harmonization of GST (end-March 2020).

Regarding poverty reduction and social protection actions as envisaged in MEFP, the authorities are committed to higher spending by expanding PKR 180 billion BISP allocation and better targeting by updating the National Socio-economic Registry (NSER) (end 2020).

Responding to a question, she said that the IMF does not dictate economic policies of the government, instead IMF help the government in providing technical support in order to take the right decisions.

Executive Director, SDPI, Dr. Abid Qaiyum Suleri said the program and its review will be determining the way forward and the short-term, medium-term and long-term vision of the government with regards to the economic policy making for Pakistan.