ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to decrease State intervention in the economy and enhance competition, which will help foster the development of a dynamic private sector.
The IMF mission led by Nathan Porter concluded a staff visit to Pakistan from November 12 to 15, 2024. After conclusion, the Fund issued a statement which noted that based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.
However, the finance minister did not issue any official statement at the conclusion of talks with IMF team.
During the visit, the IMF team met with senior officials from federal and provincial governments and the State Bank, as well as representatives from the private sector.
Staff visits are a standard practice for countries with semi-annual programme reviews and aim to engage with the authorities and other stakeholders on the country’s economic developments and policies and the status of planned reforms.
At the end of the visit, Porter issued the following statement: “We had constructive discussions with the authorities on their economic policy and reform efforts to reduce vulnerabilities and lay the basis for stronger and sustainable growth. We agreed with the need to continue prudent fiscal and monetary policies, revenue mobilization from untapped tax bases, while transferring greater social and development responsibilities to provinces.
In addition, structural energy reforms and constructive efforts are critical to restore the sector’s viability, and Pakistan should take steps to decrease state intervention in the economy and enhance competition, which will help foster the development of a dynamic private sector. Strong program implementation can create a more prosperous and more inclusive Pakistan, improving living standards for all Pakistanis.
“We are encouraged by the authorities’ reaffirmed commitment to the economic reforms supported by the 2024 Extended Fund Facility (EFF). The next mission associated with the first EFF review is expected in the first quarter of 2025.”
Copyright Business Recorder, 2024
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