Islamabad, 10 February 2022 (TDI): The International Monetary Fund (IMF) highlighted new policy measures for Pakistan to take up in order to ensure economic stability, and to do this, certain monetary and fiscal policies must be adopted.
IMF’s Resident Representative Esther Perez Ruiz said that Pakistan needs to look into enhancing the competitiveness of its firms, in addition to tax reforms for the betterment of the economy. She also added that the IMF is set to bring in a new set of policies that would encourage inclusive and sustainable growth.
“We want Pakistan to attain a long-lasting and durable growth. And for this there is a need to first endeavor to implement the macroeconomic policies, leading to the country’s economic development.” -Resident Representative, Esther Perez Ruiz.
She also added that Pakistan’s tax to GDP ratio is very low and it needs to be rectified. The finance bill that was recently levied eliminated sales tax exemptions to help with this and also to reduce the complexity of the taxation system.
The IMF remains open to suggestions, remarks, and observations from Pakistan regarding this program and the reforms it aims to bring.
The President of the Lahore Chamber of Commerce and Industry (LCCI) Mian Nauman Kabir said that it is likely that this program will affect Pakistan quite substantially but the country is committed to seeing this program through just as did the previous ones.
“We will, however, witness the successful completion of this program as well just like the 21st program,” -LLCI President, Mian Nauman Kabir
He also added that there is a level of understanding between Pakistan and the IMF, he noted that other countries that adopted such measures always fared well in the long run.
International Monetary Fund (IMF)
The IMF is an organization of 190 countries that works to promote financial stability, food security, and monetary cooperation. Pakistan has gone to the IMF a total of 22 times. With each loan, the IMF sets out a number of policies that the borrowing country must follow.
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