Ahsan express satisfaction with recent IMF package
Pakistan
Ahsan Iqbal described IMF agreement as a much-needed respite that restored investor confidence.
ISLAMABAD (Dunya News) - Federal Minister for Planning Development and Special Initiatives, Ahsan Iqbal on Wednesday expressed satisfaction with the recent IMF package, which alleviated concerns of an immediate default.
However, he emphasized that the deal should be considered as a temporary relief and merely a breather, rather than a lasting solution.
During the “Beyond IMF Agreement: Challenges and Opportunities for Pakistan” Twitter space organized by the Planning Ministry, the minister conveyed his views to a global audience, said a press release issued here.
In June, Pakistan secured a $3 billion short-term financial package from the IMF, in recognition of the consistent efforts of the current government, which took office in April 2022.
Minister Iqbal described this as a much-needed respite that restored investor confidence.
However, he stressed the need for structural reforms to ensure long-term sustainability and capitalize on this breathing space.
The minister pointed out that the deal was necessary due to a severe balance of payment crisis in 2022, caused by poor policies of the previous government.
He noted that the country experienced its worst deficit of $50 billion after allowing imports worth $84 billion.
The minister emphasized the importance of introspection and pursuing development for the country, rather than merely celebrating the deal.
It is worth mentioning that following the IMF deal, the country’s stock market experienced a significant upswing, with renewed confidence from investors.
Additionally, the Pakistani rupee gained against the US dollar in the interbank market he said, adding that if the business continued as usual, the positive momentum could be lost.
He stressed the necessity of implementing structural reforms to guide the country onto a sustainable path and achieve desired results in the long term.
These policies should be maintained regardless of which government was in power, he added.
Highlighting the achievements of the current government, the minister mentioned that since assuming the charge of office, they had been focused on addressing immediate challenges.
The Planning Ministry successfully conducted a turnaround conference in June last year, leading to the development of a comprehensive 5Es framework.
This multipronged strategy aims to propel Pakistan towards sustained growth and focuses on Exports, E-Pakistan, Environment and Climate Change, Energy & Infrastructure, and Equity and Empowerment.
The minister also highlighted various key initiatives undertaken within one year to drive the country’s development despite limited resources.
These initiatives include development of 20 of Pakistan’s poorest districts with an allocation of Rs 40 billion, PM Youth Initiatives, the revival of CPEC, reinstating the laptops scheme for students, the Governance Innovation Lab, and the completion of several infrastructure projects.
