IMF program aims to restore balance in Pakistan's economy: mission chief

ISLAMABAD: The overreaching objective of International Monetary Fund’s (IMF) program is to restore the balance in Pakistani economy, said the body’s Mission Chief for Pakistan Ernesto Ramirez Rigo.

“I think the government’s program, which is now supported by the fund’s program, has two main pillars and I will develop each of them a little bit,” he said on Saturday in a conference call on the release of IMF staff report on the Extended Fund Facility for Pakistan.

The first pillar is to resolve macroeconomics issues while the second is related to the rebuilding of institutions, the mission chief explained.

He said the main issues pertaining to the economy entails its external and internal balance, debt payments and other financial matters.

The real problem of Pakistan is the low level of tax collection, as per Rigo. He told that the IMF program also emphasizes on expanding the tax net.

Referring to the flexible market-determined exchange rate, the mission chief said it will improve conditions for local producers and for the export sector. “In addition, there is a third pillar of macroeconomic stabilisation, which is to basically increase social spending,” Rigo said.