An IMF mission led by Mr. Harald Finger visited Pakistan from September 27th, to October 4th, 2018. The Mission met key stakeholders within the Government of Pakistan and exchanged views on all sectors of economy. Upon conclusion of its visit, the Mission held a wrap up meeting with the Finance Minister and his team, sharing its initial assessment of the economy. The Mission in its evaluation has highlighted the imminent challenges facing Pakistan's economy including fiscal deficit, current account deficit, low level of reserves, accumulation of losses in public sector enterprises, non-execution of structural reforms, weakening of institutions and lack of domestic resource mobilization. Corrective measures recently taken by the Government of Pakistan in the Mission's view are steps in the right direction. The visiting team was of the view that further actions are required to be undertaken to correct imbalances in the economy and put it on a path of sustainable growth. The Government of Pakistan largely shares this assessment of the economy and is committed to take further corrective measures to restore stability and inclusive growth. As also acknowledged by the Mission, the Government has inherited a fragile economy since critical economic decisions were delayed by the previous government in an election year. Prompt decisions on monetary, exchange rate and fiscal policies could have averted the economic downturn that Pakistan is facing today. Going forward the Government of Pakistan is committed to take decisive corrective adjustments to restore the economy on a path of stability and growth. The Government is of the view that fiscal and price adjustments alone are not sufficient, and that unless the much delayed deep structural and institutional reforms are implemented with firm and unflinching resolve, the entrenched imbalances plaguing the economy will keep resurfacing. Pakistan is committed to protecting the poor and vulnerable segments of the society and will invest more in social protection, human development and job creation to ensure that the burden of adjustment is not unjustly imposed on the weaker segments of society. Along-with structural and governance reforms, revival of domestic industry and export sector are high priorities of the Government. ******
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