*ISLAMABAD – The International Monetary Fund has said that the economic andsecurity situation in Pakistan has improved, adding that its latesteconomic reform programme is on track too.*
“The government of Pakistan is now determined and committed to implementingstrong and solid economic programmes with IMF’s support,” said Maria TeresaDaban Sanchez, the IMF resident representative for Pakistan.
The targets and objectives of the fiscal and the monetary policies and thepower sectors have been achieved for the first quarter, she said. Theprogramme is on track and the policies are getting good results.
The economic challenges being faced by Pakistan today is the result ofimbalance policies over the years, she remarked.
No adjustments were made in power tariff, there is circular debt, policyrate that was negative in real terms maybe because it was favoring somebusinessmen but it was increasing inflation, she explained.
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The fiscal deficit was too high and that was financed by borrowing fromthe 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 andimplementing ones which will benefit it, she added.
