Daily Times

The International Monetary Fund (IMF) has said that Pakistan’s economic reforms programme is on track and has started to bear fruit.

According to a report, the Executive Board of the IMF made this observation following completion of its first review of Pakistan’s economic performance under the Extended Fund Facility. The world lender said that decisive policy implementation by Pakistani authorities was helping to preserve economic stability. It noted 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. The IMF was also appreciative of Pakistan’s commitment to expanding social safety nets, reducing poverty and narrowing the gender gap.

In a statement, First Deputy Managing Director of the IMF David Lipton acknowledged Pakistan’s comprehensive plan to address the accumulation of arrears in the power sector.

He noted that efforts are ongoing in Pakistan to further improve the business environment, strengthen governance and foster private sector investment.

He said reforms of the state owned enterprises will help put Pakistan’s public finances on a sustainable path and have positive spill-overs by levelling the playing field and improving the provision of services. The completion of the review will allow Pakistan to draw about $452.5 million from the world lender, bringing the total disbursements to $1,440 million.