IMF calls for more action in Pakistan
Pakistan's budget deficit has climbed steadily over the past five years
ISLAMABAD (Dunya News) – The International Monetary Fund has called on Pakistan’s new government to act fast to stabilise its teetering economy, warning growth will likely slow and inflation rise, but made no mention of a new bailout deal.
The IMF mission led by Mr. Harald Finger visited Pakistan and met key stakeholders within the government of Pakistan. It also held a wrap up meeting with the Finance Minister and his team, sharing its initial assessment of the economy.
The mission in its evaluation has highlighted the imminent challenges facing Pakistan s economy including fiscal deficit, current account deficit, low level of reserves, accumulation of losses in public sector enterprises, non-execution of structural reforms, weakening of institutions and lack of domestic resource mobilization.
The mission stated that the corrective measures recently taken by the government of Pakistan are in the right direction.
The visiting team was of the view that further actions are required to be undertaken to correct imbalances in the economy and to put it on a path of sustainable growth.
The government of Pakistan largely shares this assessment of the economy and is committed to take further corrective measures to restore stability and inclusive growth.
As also acknowledged by the mission, the government has inherited a fragile economy since critical economic decisions were delayed by the previous government in an election year.
Prompt decisions on monetary, exchange rate and fiscal policies could have averted the economic downturn that Pakistan is facing today.
