IMF top officials break silence over economic and security situation in Pakistan
*ISLAMABAD - The International Monetary Fund has said that the economic and security situation in Pakistan has improved, adding that its latest economic reform programme is on track too.*
“The government of Pakistan is now determined and committed to implementing strong and solid economic programmes with IMF’s support,” said Maria Teresa Daban Sanchez, the IMF resident representative for Pakistan.
The targets and objectives of the fiscal and the monetary policies and the power sectors have been achieved for the first quarter, she said. The programme is on track and the policies are getting good results.
The economic challenges being faced by Pakistan today is the result of imbalance policies over the years, she remarked.
No adjustments were made in power tariff, there is circular debt, policy rate that was negative in real terms maybe because it was favoring some businessmen but it was increasing inflation, she explained.
The fiscal deficit was too high and that was financed by borrowing from the central bank, the IMF representative said.
Pakistan’s economy is currently in the process of transition, said Daban. Currently, the government is reversing the country’s wrong policies and implementing ones which will benefit it, she added.