IMF deal just a breather, structural reforms needed: Ahsan Iqbal

July 05, 2023 (MLN): The deal with IMF should be seen as a temporary relief and mere a breather, rather than a lasting solution, structural reforms are needed to ensure long term sustainability, said the Minister of Planning Development & Special Initiatives, Ahsan Iqbal, during twitter space organized by the Planning Ministry.

The minister expressed satisfaction with the recent IMF package, which alleviated concerns of an immediate default. 

In June, Pakistan secured a $3 billion short-term financial package from the IMF, thanks to the consistent efforts of the current government, which took office in April 2022.

Minister Iqbal described this as a much-needed respite that restored investor confidence.

However, he stressed the need for structural reforms to ensure long-term sustainability and to capitalize on this breathing space.

He pointed out that the deal was necessary due to a severe balance of payment crisis in 2022.

He further noted that the country experienced its worst deficit of $50bn  after allowing imports worth $84 billion. 

Minister Iqbal emphasized the importance of introspection and pursuing development for the country, rather than merely celebrating the deal.

It is worth mentioning that following the IMF deal, the country's stock market experienced a significant upswing, with renewed confidence from investors. 

Additionally, the Pakistani rupee gained against the US dollar in the interbank market. Minister Iqbal warned that if the business continues as usual, the positive momentum could be lost. 

He stressed the necessity of implementing structural reforms to guide the country onto a sustainable path and achieve desired results in the long term. 

These policies should be maintained regardless of which government is in power.

While highlighting the achievements of the current government, Minister Iqbal mentioned that since taking office, they have been focused on addressing immediate challenges. 

The Planning Ministry successfully conducted a turnaround conference in June last year, leading to the development of a comprehensive 5Es framework. 

This multipronged strategy aims to propel Pakistan towards sustained growth and focuses on Exports, E-Pakistan, Environment & Climate Change, Energy & Infrastructure, and Equity & Empowerment.

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