ISLAMABAD -- The International Monetary Fund (IMF) has noted that Pakistan's economic reform programme is on track, as the decisive policy implementation by the government is helping to preserve economic stability aiming to put the economy on the path of sustainable growth.
The IMF has said that transition to a market-determined exchange rate has been orderly and inflation has started to stabilise, mitigating the impact on the most vulnerable groups of the population. In a press released, the Fund said that government of Pakistan remains committed to expanding the social safety nets, reducing poverty, and narrowing the gender gap.
The Executive Board of the IMF on December 19 has completed the first review of Pakistan's economic performance under the Extended Fund Facility (EFF). The completion of the review will allow the authorities to draw SDR 328 million (about $452.4 million), bringing total disbursements to SDR 1,044 million (about $1,440 million). The Executive Board approved the 39-month, SDR 4,268 million (about $6 billion at the time of approval of the arrangement, or 210 percent of quota) EFF for Pakistan on July 3, 2019.
'Pakistan's programme is on track and has started to bear fruit. However, risks remain elevated. Strong ownership and steadfast reform implementation are critical to entrench macroeconomic stability and support robust and balanced growth,' said David Lipton, First Deputy Managing Director and Acting Chair in the statement. He further said 'The authorities are committed to sustaining the progress on fiscal adjustment to place debt on a downward path. The planned reforms include strengthening tax revenue mobilization, including the elimination of tax exemptions and loopholes, and prudent expenditure policies. Preparations for a comprehensive tax policy reform should start early to ensure timely implementation. Enhanced social safety nets will help alleviate...