IMF recognizes growth momentum to be on high trajectory

ISLAMABAD: The International Monetary Fund (IMF) has recognized that Pakistan’s growth momentum continued to be on a relatively high trajectory while inflation continues to remain low and stable, helped by supportive fiscal and monetary policies.

An IMF mission led by Harald Finger, that visited Pakistan from December 5th to 14th, 2017 for the first Post Program Monitoring (PPM) since the end of Extended Fund Facility (EFF) in September 2016, also recognized that continued policy reforms were likely to contain external imbalances while supporting economic growth in the medium term.

The Mission recognized notable improvements in Foreign Direct Investment, pickup in exports and recovery in workers' remittances, according to press statement issued by the Ministry of Finance here Thursday.

Furthermore, it also focused on addressing some of the vulnerabilities emanating from the higher level of imports and pressure on country's foreign exchange reserves. However, the Mission welcomed the new policy actions to address these concerns.

The Fund mission held detailed technical discussions with senior officials in the Ministry of Finance and State Bank of Pakistan, beside Ministries of Energy, Planning Development and Reforms, Commerce, Privatization, Railways, and Federal Board of Revenue, Board of Investment, NEPRA, OGRA, SECP, the statement added.

The Mission also held consultative session with Academia, Think Tanks and Bankers.

Pakistan team was led by Secretary Finance, Shahid Mahmood and Governor State Bank of Pakistan (SBP), Tariq Bajwa, it added.

Discussions largely focused on the recent economic developments and its outlook whereas deliberations were also held on reform efforts undertaken by the government including fiscal, monetary, financial, energy policies and strengthening investment climate.

During the discussions, the Government reiterated its commitment to stay on path of fiscal consolidation supported by increase in Federal Board of Revenues (FBR) revenues and prudent expenditure management.

The government also shared its commitment to continue with reform effort for public sector enterprises and protecting the vulnerable segments of the society.

According to the statement, the Mission was pleased to visit Pakistan after a gap of 4 years in improved secure environment.

The Fund and Pakistan authorities would continue discussions during Article IV consultations tentatively scheduled for first half of 2018, it added.