Asad Umar stresses on export growth to get out of future IMF programs

• Asad Umar expressed delight to see strong growth in exports in November.
• The IMF approved a second tranche of $452mn to Pakistan.

Minister for Planning, Development and Special Initiative Asad Umar has urged on the need to grow export base, as the government aims to make their ongoing International Monetary Fund (IMF) program their last.  

“Making this the last IMF program is only possible if we can get our exports growing,” said Umar in a tweet on Friday. The minister expressed his delight to see strong growth in exports, after all the measures taken since the PTI government formation. “11pc growth in dollar value in November versus November last year,” he said.

Making this the last IMF program is only possible if we can get our exports growing. With all the measures taken since the PTI govt formation great to see that exports are now getting stronger and stronger. 11% growth in dollar value in november vs november last year pic.twitter.com/zYY8z721qy

— Asad Umar (@Asad_Umar) 20 December 2019

The Executive Board of the IMF completed on Thursday the first review of Pakistan's economic performance under the Extended Fund Facility (EFF). The completion of the review will allow the authorities to draw about US$ 452.4 million, bringing total disbursements to about US$ 1,440 million.

The Executive Board approved the 39-month, about $6 billion at the time of approval of the arrangement, or 210 percent of quota EFF for Pakistan on July 3, 2019. Following the Executive Board's decision, David Lipton, First Deputy Managing Director and Acting Chair, issued the following statement:

“Pakistan's program is on track and has started to bear fruit. However, risks remain elevated. Strong ownership and steadfast reform implementation are critical to entrench macroeconomic stability and support robust and balanced growth.

“The authorities are committed to sustaining the progress on fiscal adjustment to place debt on a downward path. The planned reforms include strengthening tax revenue mobilization, including the elimination of tax exemptions and loopholes, and prudent expenditure policies. Preparations for a comprehensive tax policy reform should start early to ensure timely implementation. Enhanced social safety nets will help alleviate social costs and build support for reforms,” he said.