IMF urges greater international backing for Pakistan’s encouraging performance
Washington: Acknowledging Pakistan’s improved economic management in the face of some tough challenges, a senior International Monetary Fund official has urged enhanced world support for the country, a critical anti-terrorism partner in the region. “Pakistan’s efforts need a much greater financial support from the international community,” Adnan Mazarei, the Fund’s Mission Chief to Pakistan, said. He spoke to reporters following IMF’s approval this week’of a $1.2 billion tranche of $ 11.3 billion stand-by arrangement for Pakistan.
The approval came as the Fund completed a review of the ecomomic performance of Pakistan, marked by encouraging macro economic stabilization signs and structural tax reforms. Pakistan, the second biggest South Asian economy, made some difficult decisions on tax reforms and considerably reduced inflation this year, while also continuing a high-stakes fight against Taliban and al-Qaeda militants along the 1600-mile long porous Afghan border.
According to Finance Minister Shaukat Tarin, Pakistan’s ongoing fight against militancy is costing the country around $ 8.5 billion a year. In the conference call, Mazarei particuarly reminded the major economic powers of the need to step up realization of more than $ 5 billion pledges they made at Tokyo conference earlier this year.
“International donors need to disburse pledges they made to Pakistan in the Aril Tokyo Conference. They need to do so promptly because these disbursements are meant to finance much-needed investments in infrastructure, health, education (fields),” he stated.
Mazarei, who is Assistant Director in the Middle East and Central Asia Department at the Fund, noted while Pakistan still faces significant economic challenges, it has done pretty well by keeping things on track in various sectors of the economy - bolstering foreign exchange reserves and curbing inflation down to 10 percent from a high of 25 percent. “I want to commend the economic team, headed by Finance Minister Shaukat Tarin and Governor Central Bank Saleem Raza, who have taken some tough decisions and despite security situation have pushed many reforms ahead.”
Keeping things on track has been helpful in implementing the measures for the country’s economy, he remarked. In this respect, Mazarei particularly cited moves towards better tax administration and improvement in the social safety nets. “There have been shortfalls, no doubt, but it tells that even if times are very very tough on other fronts, commitment --- is moving forward.” Mazarei said major financial institutions including IMF, the World Bank and the Asian Development Bank have been supportive of Pakistan’s improved performance in the year. Courtesy APP |
