The International Monetary Fund (IMF) has lauded Pakistan’s recent policy measures aimed at strengthening economic resilience.
IMF said in a statement that its Executive Board concluded the 2021 article IV consultation and the sixth review of the extended arrangement under the Extended Fund Facility for Pakistan. As a result, the review allows the authorities to draw $1 billion. The international fund donor has appreciated Pakistan’s government measures to strengthen the economy of the country.
Pakistan faced the pandemic, and the government came out of it successfully. Pakistan also faced the issues like increasing trade deficit gap and devaluation of the rupee, resulting from the big increase in commodity prices. The economy of the country will recover during the current fiscal year with real GDP growth of 4 percent.
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IMF says that Pakistan would face the probable rise in pandemic, strict international financial conditions, increasing regional geographic tension, and deployed implementation of structural reforms.
Antoinette Aayeh, the Deputy Managing Director said, “The Pakistani economy has continued to recover despite the challenges from the COVID-19 pandemic, but imbalances have widened and risks remain elevated.”
Further says, “The authorities’ recent policy efforts to strengthen economic resilience are welcomed but the timely and consistent implementation of policies and reforms remain essential to lay the ground for stronger and more sustainable growth. The authorities have taken important measures to strengthen fiscal policy and put public finances on a sounder footing. Along with careful spending management, revenue mobilization will help create space for much-needed spending on infrastructure and social protection, while improving debt sustainability.”
International fund donor is of the view that it is required to strengthen the economic productivity investment and private sector development. The issues with reference to climate changes should also be addressed.