ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistani authorities to take steps to reduce state intervention in the economy and strengthen competition to foster the development of a dynamic private sector.
“Pakistan should take steps to decrease state intervention in the economy and enhance competition, which will help foster the development of a dynamic private sector, IMF’s mission chief Mr. Nathan Porter said in a statement issued after concluding a staff visit to Pakistan from November 12 to 15, 2024.
During the visit, the IMF team met with senior officials from federal and provincial governments and the State Bank of Pakistan, as well as representatives from the private sector.
The IMF mission chief stated that staff visits are standard practice for countries with semi-annual program reviews and aim to engage with the authorities and other stakeholders on the country’s economic developments and policies and the status of planned reforms.
“We had constructive discussions with the authorities on their economic policy and reform efforts to reduce vulnerabilities and lay the basis for stronger and sustainable growth,” Mr. Porter stated.
The IMF mission chief also stressed the need for Pakistan to continue with prudent fiscal and monetary policies, focusing on revenue mobilisation from untapped tax bases.
“We agreed with the need to continue prudent fiscal and monetary policies, revenue mobilization from untapped tax bases, while transferring greater social and development responsibilities to provinces,” the IMF mission chief stated at the end of the visit to Pakistan.
Mr. Nathan Porter said that in addition to fiscal and monetary policies, structural energy reforms and constructive efforts are critical to restore the sector’s viability, and Pakistan should take steps to decrease state intervention in the economy and enhance competition.
The IMF mission chief stressed the strong implementation of policies and reforms for a more prosperous and more inclusive Pakistan. “Strong program implementation can create a more prosperous and more inclusive Pakistan, improving living standards for all Pakistanis,” Mr. Porter said.
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The IMF delegation’s visit was primarily focused on assessing Pakistan’s performance under the Extended Fund Facility (EFF) programme, which aims to support the country’s financial stability.
“We are encouraged by the authorities’ reaffirmed commitment to the economic reforms supported by the 2024 Extended Fund Facility (EFF). The next mission associated with the first EFF review is expected in the first quarter of 2025,” Mr. Nathan Porter said.
