The International Monetary Fund (IMF) has categorically denied any involvement with the 'Emerging Markets' magazine and stated that it is an independent publication. On October 8, 2016 Prime Minister's Office had stated: "Emerging Markets, the newspaper of the IMF/World Bank Annual Meeting, has declared Ishaq Dar as Finance Minister of the year 2016 for South Asia."
Briefing media through a video link at the launch of the final IMF staff level review under the $6.64 billion Extended Fund Facility (EFF), the IMF team led by Harald Finger distanced itself from the 'Emerging Market' magazine saying "IMF is not involved in Emerging Market". Finger further stated he has not congratulated Finance Minister Dar on the award and added as Governor State Bank of Pakistan (SBP) was in Washington, he congratulated him.
Governor state Bank of Pakistan was awarded as the Central bank Governor of the Year 2016 by Euromoney magazine. Finger maintained that Pakistan has made considerable progress in terms of reserves, fiscal deficit and foreign exchange reserves under three years IMF programme but these are needed to be pursued continuously otherwise threats of balance of payment would continue to hover on Pakistan .
"Policy discipline with gradual fiscal consolidation and building foreign exchange reserves are important for sustaining economic achievement," Finger said and pointed out current system of revenue and expenditure between provinces and federal government is not balanced and some adjustments are required. Pakistan required 7 percent growth to absorb two million graduates entering the market, he further stated. Pakistan exports are likely to continue to decline primarily because of poor business environment, overvalued real exchange by 5 to 20 percent and energy problems. The decline in export would have negative impact on the current account deficit and create balance of payment problem. He said that Pakistan current account is expected to widen in the near future on two account - expected increase in oil prices and import on account of China Pakistan Economic Corridor (CPEC). Pakistan's current account estimated at $1.5 billion would be relatively higher as compared to last fiscal year but would remain still at manageable level. Increase in export would be required to meet the country's financing requirements, Finger added.
Finger appeared concerned over debt to GDP ratio and maintained "debt level is still at relatively higher level. However, he claimed that there was improvement in power sector especially flow of arrears has come down from Rs 200 billion to Rs 8 billion. He said now flow of arrears has been arrested which he claimed was a major achievement. About the stock of circular debt, Finger said, "the government is working on a long term plan to deal with this problem". He said a mix of factor contributed to the improvement in the power sector which included enhanced collection, reduction in line losses and adjustment in tariff. The IMF mission chief admitted there was a set back on privatization but authorities are still making progress on Pakistan International Airlines and privatization of Pakistan Steel Mills (PSM) has also been restarted.
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