IMF mission terms government’s corrective measures as steps in right direction

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ISLAMABAD, Oct 5 (APP):The International Monetary Fund Mission during its recent visit to Pakistan said that the corrective measures recently taken by the Government of Pakistan are steps in the right direction.
The visiting team was of the view that further actions are required to be undertaken to correct imbalances in the economy and put it on a path of sustainable growth.
The IMF mission led by Harald Finger visited Pakistan from September 27 to October 4, 2018 and met key stakeholders in Government of Pakistan and exchanged views on all sectors of economy.
Upon conclusion of its visit, the mission held a wrap-up meeting with the Finance Minister Asad Umar and his team, sharing its initial assessment of the economy, said a statement issued here on Friday.
The mission in its evaluation highlighted the imminent challenges faced by Pakistan’s economy including fiscal deficit, current account deficit, low level of reserves, accumulation of losses in public sector enterprises, non-execution of structural reforms, weakening of institutions and lack of domestic resource mobilization.
The Government of Pakistan shared this assessment of the economy and is committed to take further corrective measures to restore stability and inclusive growth.
As also acknowledged by the mission, the government has inherited a fragile economy since critical economic decisions were delayed by the previous government in an election year.
Prompt decisions on monetary, exchange rate and fiscal policies could have averted the economic downturn that Pakistan is facing today.
Going forward the Government of Pakistan is committed to take decisive corrective adjustments to restore the economy on a path of stability and growth.
The Government is of the view that fiscal and price adjustments alone are not sufficient, and that unless the much delayed deep structural and institutional reforms are implemented with firm and unflinching resolve, the entrenched imbalances plaguing the economy will keep resurfacing.
Pakistan is committed to protecting the poor and vulnerable segments of the society and will invest more in social protection, human development and job creation to ensure that the burden of adjustment is not unjustly imposed on the weaker segments of society.
Along-with structural and governance reforms, revival of domestic industry and export sector are high priorities of the Government.