Managing Director (MD) of the International Monetary Fund (IMF) Kristalina Georgieva has said that the new standby arrangement program is an opportunity for Pakistan to bring macroeconomic stability, Pakistan has to follow this program with full dedication.
In its statement, MDIMF emphasized on balancing the price and cost of electricity and said that Pakistan needs reforms in the energy sector, there is a need to improve targeted subsidies in the power sector.
Kristalina Georgieva welcomed the recent increase in the policy rate, saying that a market-based exchange rate is also important to counter external pressures.
The IMF also called for stricter supervision of the banking system and improving the efficiency of the institutions, in this regard MDIMF said that through consistent implementation of the policies, imbalances would be removed.
He said that while the primary surplus through Budget 2024 is a welcome step towards fiscal sustainability, the expected improvement in tax revenue will be a very important step.
MDIMF said there is a need to improve revenue for social and development expenditure, besides exercising fiscal discipline on non-essential expenditure.
Kristalina Georgieva added that equal opportunities must be created for investment and trade.
He said that last year Pakistan’s economy faced many severe setbacks including floods, increase in commodity prices, internal and external tough financial conditions.
He further said that inflation increased due to non-implementation of loan program policies, internal and external financial reserves decreased due to non-implementation of loan program.
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