IMF notes positive economic performance of Pakistan in first quarter review.

ISLAMABAD -- International Monetary Fund's Resident Representative for Pakistan, Maria Teresa Daban Sanchez has expressed satisfaction on overall macro-economic performance of the government.

She expressed these views during a conversation with relevant stakeholders on first quarterly review of 39-month arrangement made under the Extended Fund Facility for Pakistan, in Islamabad.

The IMF Resident Representative said revenue collections have increased substantially, with improvement in the trade deficit and net foreign assets.

She said there was a successful transition towards a market-based exchange rate regime by the government which helps increase foreign exchange reserves.

Teresa said the government was also successful in controlling expenditures with help of new public finance management law and avoiding borrowing from the central bank.

Meanwhile the International Monetary Fund has said that the economic and security situation in Pakistan has improved, adding that its latest economic reform programme is on track too.

'The government of Pakistan is now determined and committed to implementing strong and solid economic programmes with IMF's support,' said Maria Teresa Daban Sanchez, the IMF resident representative for Pakistan, in an interview with a private TV channel.

The targets and objectives of the fiscal and the monetary policies and the power sectors have been achieved for the first quarter, she said. The programme is on track and the policies are getting good results.

The economic challenges being faced by Pakistan today is the result of imbalance policies over the years, she remarked.

No adjustments were made in power tariff, there is circular debt, policy rate that was negative in real terms maybe because it was favoring some businessmen but it was increasing inflation, she explained. The fiscal deficit was too high and that was financed by borrowing from the central bank, the IMF representative said.

Pakistan's economy is currently in the process of transition, said Daban. Currently, the government is reversing the country's wrong policies and implementing ones which will benefit it, she added.

The process is slowing down the economy, but it is responding to the change positively. We believe that this will reduce inflation too, she said.

She recognised the steps taken by the government...