IMF proposes further liberalisation of economy

The International Monetary Fund (IMF) on Tuesday termed Pakistan''s current pace of investment as ''insufficient'' to keep its economic growth on track, and recommended it to further liberalise economy for attracting more foreign and domestic investment in the future.
The Fund also wanted Pakistan to become more aggressive to enhance its trade with international partners to achieve the target for the current fiscal year.
Sources said that the IMF review mission, currently visiting here, held meetings with different economic policy makers in Islamabad and got the details of economy gains during the last fiscal year.
The mission comprises Mohsin Khan, Miguel Savastano and Hend Lorie.
Sources said that the IMF delegation pointed out various areas, which were hampering local and foreign investment into Pakistan. Some of these were slow pace of reforms programmes initiated for almost all key areas of economy such as banking, judicial, energy in particular, gas and electricity distribution companies and bottlenecks that were yet to be removed to give key role to the private sector.
The mission suggested that the government should focus on all these areas, which can help attract more domestic and foreign investment besides enhancing its trade with major international partners to achieve $18.6 billions for 2006-07.
The mission''s meetings with Governor State Bank of Pakistan (SBP) Dr Shamshad Akhtar, Commerce Minister Humayun Akhtar and National Reconstruction Bureau (NRB) chief Danial Aziz were of extraordinary importance.
The mission is in Islamabad for annual review of Pakistan''s economy under consultations article IV of IMF. Under article IV of the consultations, the Fund can review economic growth of its member countries including Pakistan and give its suggestions for policy making. However, its suggestion are not binding for those members who are not beneficiary of its financial assistance.
It may be noted that after a long association for financial assistance Pakistan had walked out of IMF''s funding facility some few years back.
One of the policy makers told Business Recorder after the meeting with IMF delegation that the government side gave the mission details of steps being taking to increase investment for different sectors. He said the visiting delegation was also briefed about the incentives granted to exporters to take exports to an optimal level.