IMF calls for less state control, more competition in Pakistan

November 16, 2024 (MLN): The International Monetary Fund (IMF) has urged the Pakistani government to reduce state intervention in the economy and promote competition, aiming to foster the growth of a dynamic private sector.

An IMF mission, led by Nathan Porter, concluded a staff visit to Pakistan from November 12 to 15, 2024. During the visit, the team held meetings with senior officials from federal and provincial governments, the State Bank, and representatives of the private sector.

Staff visits are standard practice for countries with semi-annual program reviews and aim to engage with the authorities and other stakeholders on the country’s economic developments and policies and the status of planned reforms.

At the end of the visit, Porter issued the statement highlighting constructive discussions with the authorities on their economic policy and reform efforts to reduce vulnerabilities and lay the basis for stronger and sustainable growth.

Both sides agreed with the need to continue prudent fiscal and monetary policies, revenue mobilization from untapped tax bases, while transferring greater social and development responsibilities to provinces."

In addition, structural energy reforms and constructive efforts are critical to restore the sector’s viability.

Moreover, strong program implementation can create a more prosperous and more inclusive Pakistan, improving living standards for all Pakistanis.

"We are encouraged by the authorities’ reaffirmed commitment to the economic reforms supported by the 2024 Extended Fund Facility (EFF)," the statement concludes.

The next mission associated with the first EFF review is expected in the first quarter of 2025.

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