April 19, 2024 (MLN): One of the major economic reasons why Pakistan seeks a new International Monetary Fund (IMF) program is to preserve macroeconomic stability that requires fiscal measures aimed at reducing budget deficits and strengthening the fiscal situation through improved revenue generation.

This point was highlighted by Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, in response to a question during yesterday's press briefing.

He said that the current standby program worth $3 billion, initiated ten months ago allowed Pakistan to achieve a certain number of important milestones in terms of economic stability.

The last review was successful and will be put forward to the board, which will end the program that helped Pakistan address acute economic imbalances and maintain its economic stabilities.

He further shared that Pakistan has expressed interest for a new program in order to help address some of the key challenges.

In addition to macroeconomic challenges, the energy sector stands as a crucial dimension requiring reforms in Pakistan.

Thirdly, there is a need to expand the potential of this economy to grow, as the country possesses vast potential.

The director mentioned that leveling the playing field, improving the business environment, and granting the private sector more room internally as well as in exports will aid Pakistan.

“These are the key pillars that Pakistan would need in order to improve its situation and the Fund is ready to support,” he added.

Another crucial element that he highlighted was that the package of reform is now more important than the size of the program because the authority has observed that the right measures have provided the right response.

"Therefore, what is important at this stage is to accelerate the reforms, and double down on the structural reforms to provide Pakistan with its full growth potential," he concluded.

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Posted on: 2024-04-19T16:20:43+05:00