IMF Challenges | Editorial
Following the economic progress Pakistan made in lieu of its agreement with IMF, the FM’s upcoming visit to the US with the objective of holding crucial discussions with the IMF and the World Bank holds the promise of a financial uplift for the nation. To advance Pakistan’s economic agenda, this meeting holds great significance in order to secure financial assistance from the IMF.
Even though the IMF Managing Director Kristalina Georgieva highlighted that Pakistan has made significant economic progress, we still face significant challenges that include expanding our tax base, improving public spending efficiency, and ensuring transparency. These issues have hindered economic growth in the past and are currently proving to be an obstacle in Pakistan’s way of securing the IMF loan. Improvement in these areas would ensure a faster likelihood of securing a loan from the IMF. Despite these challenges, Pakistan has successfully completed its $3 billion Stand-By Arrangement (SBA) with the IMF. Although the government has taken steps to power through these challenges, including measures that tackle tax evasion and tax expansion, it will take time for the successful implementation of the government’s trace and track plan that seeks to enhance revenue collection.
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Another agenda of the meetings in the US includes discussions with the IMF for a potential follow-up program to its SBA. This new program aims to address long-term economic challenges and support Pakistan’s economic growth. Along with this, the FM plans on approaching the IMF for a medium-term Extended Fund Facility (EFF). With EFF’s focus on climate finance, Pakistan is aiming to secure support from the international community to address the disastrous aftermath of the floods that destroyed the lives of many people in Sindh and Balochistan.
Through collaboration with the IMF and the World Bank, Pakistan has the chance to work on stabilise its economy. It is time for the government to take proactive steps to overcome the challenges as pointed out by the IMF. As we keep our fingers crossed, let us hope that the discussion with these financial institutions goes in the favour of Pakistan and we secure the financial assistance our country desperately requires.
Source: https://www.nation.com.pk/14-Apr-2024/imf-challenges