July 19, 2019 (MLN): International Monetary Fund’s resident representative at Pakistan, Teresa Daban Sanchez has said that people have erroneous notions about the IMF.
During a seminar held in Islamabad, she said that IMF is not making any profit after giving loans to Pakistan.
Further defending the purpose of the fund, she said IMF helps members’ countries which are facing financial problems.
With respect to that state of Pakistan’s economy, she said that the biggest and foremost issue that the country is facing is of debt payments.
She further stated that Pakistan spends almost 25 percent from its total revenue
Nevertheless, she appreciated the fact that the current account deficit of the country has reduced.
While she pointed out that revenue collection in Pakistan has been less, she went on to suggest that the country should increase spending on under privilege class.
Deliberating upon volatility in exchange rate, she said that Pakistan’s exchange rate should be determined according to market forces.
Shedding some insight on FATF’s upcoming verdict, she said that Pakistan must comply with the rules laid out by FATF to move out of its grey list.
