ISLAMABAD, Jul 03 (APP): Chief Executive Officer Pakistan Furniture Council Mian Kashif Ashfaq on Monday said if implemented effectively, an International Monetary Fund (IMF) program will serve as a catalyst for economic stability, growth, and long-term development.
Chairing a PFC board of directors meeting, he said an IMF bailout package will offer several benefits to Pakistan and its primary benefit is the provision of immediate financial support to address a country’s balance of payment crisis and economic instability, said a press release.
The package provides a substantial infusion of foreign exchange reserves, which can stabilize the currency and prevent a further decline in its value.
“This stability fosters confidence among investors, both domestic and foreign, and helps fortify economic stability.
By implementing economic reforms, such as fiscal consolidation measures, tax reforms, privatization of state-owned enterprises, and improvements in governance, Pakistan can achieve long-term economic stability and sustainable growth”, he added.
He said an IMF bailout signals the international community’s support for the country’s economic policies and can enhance investor confidence. This confidence attracts foreign direct investment (FDI), as investors view the country as more stable and less risky.
He said increased FDI can spur economic growth, create jobs, and enhance productivity in various sectors, contributing to long-term development.
Mian Kashif Ashfaq said the package will also improve a country’s access to other sources of financing, such as multilateral development banks and international capital markets. By demonstrating a commitment to economic reforms and meeting IMF program targets, Pakistan can enhance its creditworthiness and attract additional funding from other sources.