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IMF asks Pakistan to take measures to overcome revenue shortfall

DUBAI: The International Monetary Fund (IMF) asked Pakistan to take measures to further stabilize the foreign exchange reserves of the country despite the satisfactory economic progress during the fiscal year, ARY News reported.

IMF on Thursday issued the statement after completion of the Executive Board meeting of the fourth and fifth reviews of Pakistan’s economic performance under a three-year programme supported by an Extended Fund Facility (EFF). According to which macroeconomic conditions are improving, but significant risks to recovery remain.

Appreciating government’s effort for keeping fiscal consolidation on track, IMF stated that measures taken by the authorities to address short-term macroeconomic vulnerabilities and implement structural reforms are bearing fruit, but continued efforts are needed to make the economic transformation more sustainable.

IMF has suggested that reforms in energy sector should remain continue stating that administrative constraints on the power sector’s regulatory framework, improving the operations and collections of energy companies, and electricity tariff reform should continue.

The statement added that gas electricity tariff should be increased.

IMF praised the government’s commitment to privatization of public sector enterprises terming it strong .

It has also pointed out that legislation to enhance central bank independence is crucial and should conform to best international practices.

It is expected that Pakistan may receive the two tranches worth of $1.1 billion by Friday. After receiving it, the foreign exchange reserves of government will increase to $15 billion.

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