The Minister for Finance, Shaukat Tarin, has said that the 7th review meeting between Pakistan and the International Monetary Fund (IMF) has concluded and the fund will likely respond about the discussions tomorrow.
In informal talks with the media, he dispelled rumors that dialogue between Pakistan and the IMF has been suspended, and remarked, “The rumors are spreading while sitting in drawing rooms”.
He added that the authorities have briefed the IMF about the various steps taken for Pakistan’s economic growth.
Addressing the Pakistan Petrochemical Symposium, he said that there is no clear policy road map for investment in any sector. Also, the symposium will set the road map for improved economic growth.
“Our economy is moving forward with many challenges. In the 1960s, Pakistan’s economy was the fourth-largest economy in Asia. Wider nationalization in the 70s led to various problems for the economy than both Afghan wars had a direct impact on Pakistan’s economy and caused severe problems,” Minister Tarin detailed.
He said that Pakistan’s economy is suffering due to these challenges and structural problems, and failure to take timely steps will result in a catastrophe.
The Finance Minister dilated that the PTI government has received a legacy of low tax ratio to GDP, huge trade deficit, a shaky growth rate of the economy, and an imbalance between revenue and expenditure. He mentioned that the PTI had found a $20 billion current account deficit on the first day, which it had tried to mitigate with help from friendly countries but was insufficient.
He also said that the economy is challenged with high discount rates, the exchange rate of the rupee, and heavy payments, and the government has tried to overcome these problems by taking concrete steps. Also, the government has taken steps to bring the GDP growth rate to six percent with an effective strategy.
Minister Tarin said that the government had to go to the IMF to deal with the challenges, and has taken harsh measures to stabilize the country.
He said that Pakistan needs stable economic growth, and is giving direct funds to the underprivileged segments of society to insulate them from economic shocks. Moreover, the economy cannot grow without the development of agriculture, he remarked.
