Finance Minister Dr Abdul Hafeez Shaikh has said that Pakistan’s agreement with the International Monetary Fund (IMF) will not only help boost exports but also economic growth.
“Making the people of Pakistan prosperous is Prime Minister Imran Khan’s foremost priority,” he said while speaking to the media on Wednesday after his appearance before the Election Commission of Pakistan (ECC) in connection with the scrutiny of his nomination papers for the upcoming Senate elections.
The finance minister said that investors and capital markets over the world would be attracted towards investment opportunities the country will soon boast as a result of the agreement.
Minister for Finance & Revenue Dr.Abdul Hafeez Shaikh’s @a_hafeezshaikh media talk pic.twitter.com/uYFmZ9kuFd
— Ministry of Finance (@FinMinistryPak) February 17, 2021
Earlier on Tuesday, the international financial institution and Pakistan reached a staff-level agreement that Pakistan had completed reforms required for the release of around $500 million in funds that had been suspended for about a year.
“The package strikes an appropriate balance between supporting the economy, ensuring debt sustainability and advancing structural reform. Pending approval of the Executive Board, the reviews’ completion would release around $500 million,” the Fund said in a statement issued by both sides.
Financial analysts are of the opinion that the hold-up was due to questions around fiscal and revenue reforms.
An agreement was also reached on the measures required to complete further reviews of the reform programme, which should eventually bring Pakistan $6 billion from the IMF’s Extended Fund Facility (EFF).
Moreover, the IMF said economic reforms prior to the Covid-19 shock had started to reduce Pakistan’s economic imbalances and created the conditions for better economic performance.
“As a result of the authorities’ actions, the Covid-19 first wave started to abate over the 2020 summer and the impact on the economy was significantly reduced. The external current account improved due to stronger-than-expected remittances, import compression, and a mild export recovery,” the fund said.
It projected economic growth of 1.5pc in fiscal 2020/21.
