WASHINGTON: The IMF Executive Board on Friday completed the final review of Pakistan\u2019s reform program leading to an immediate release of $102 million, and praised the government\u2019s commitment to continue implementing strong policies to reinforce macroeconomic stability.
\nThe Board met in Washington, chaired by Deputy Managing Director and Acting Chair, Mitsuhiro Furusawa, to complete the 12th and final review under the 3 year Extended Fund Facility (EFF) that was granted to Pakistan in 2013, leading to approval of the $6.15 billion loan.
\n\u201cSignificant challenges remain for Pakistan in the post program period, and the authorities\u2019 commitment to continue implementing strong policies to reinforce macroeconomic stability gains and advance growth supporting reforms is to be commended,\u201d the IMF Director said in a statement.
\nHe said Fund\u2019s supported program helped Pakistan restore macroeconomic stability, reduce vulnerabilities, and make progress in tackling key structural challenges. The meeting noted that economic growth has gradually increased and inflation has declined.
\n\u201cExternal buffers have been bolstered, financial sector resilience has been reinforced, and the fiscal deficit has been reduced, while social safety nets have been strengthened,\u201d the statement said.
\nMr. Furusawa said that tax policy and administration reforms allowed for further revenue mobilization, adding that steps have been taken to strengthen the State Bank of Pakistan\u2019s autonomy.
\n\u201cEnergy sector reform allowed a reduction of power outages, energy subsidies, and accumulation of power sector arrears. A country wide strategy to improve the business climate was adopted,\u201d he added.
\nThe Executive Board welcomed the government\u2019s plan to further reduce the fiscal deficit and observed that the 2016\/17 budget and the revised fiscal responsibility framework can anchor fiscal policy in support of further gradual fiscal consolidation.
\n\u201cFurther accumulating international reserves in a context of sufficient exchange rate flexibility will help strengthen confidence and competitiveness, while maintaining a prudent monetary policy stance will be key to supporting low inflation and macroeconomic stability.\u201d
\n\u201cMoving forward with key structural reforms is pivotal to foster higher and more inclusive growth,\u201d Mr. Furusawa said added that restructuring and attracting private sector participation in public enterprises is needed to ensure their financial viability and reduce fiscal costs.
\nThe meeting observed that completing the power sector reform will be important to strengthen the soundness of the sector and support growth. \u201cContinuing to move forward with the implementation of the new business climate reform strategy will help increase competitiveness, foster investment, and support private sector led growth and job creation.\u201d
\nThe IMF Executive Board said that the Fund will continue close engagement with Pakistan through policy dialogue in the context of regular consultations and post program monitoring, along with ongoing technical assistance.<\/p>\n","protected":false},"excerpt":{"rendered":"
WASHINGTON: The IMF Executive Board on Friday completed the final review of Pakistan\u2019s reform program leading to an immediate release of $102 million, and praised the government\u2019s commitment to continue implementing strong policies to reinforce macroeconomic stability. The Board met in Washington, chaired by Deputy Managing Director and Acting Chair, Mitsuhiro Furusawa, to complete the […]<\/p>\n","protected":false},"author":1,"featured_media":882,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-4508","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n