An International Monetary Fund (IMF) mission led by Mr. Harald
Finger 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.
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 Mission also held consultative session with Academia,
Think Tanks and Bankers. Pakistan team was led by Mr. Shahid Mahmood, Secretary
Finance and Mr. Tariq Bajwa Governor State Bank of Pakistan.
Discussions largely focused on the recent economic developments
and its outlook. Deliberations were also held on reform efforts undertaken by
the Government including fiscal, monetary, financial, energy policies and
strengthening investment climate. The Mission recognized that Pakistan growth
momentum continues to be on a relatively high trajectory while inflation
continues to remain low and stable, helped by supportive fiscal and monetary
policies. Continued policy reforms are likely to contain external
imbalances while supporting economic growth in the medium term.
The Mission also recognized notable improvements in Foreign
Direct Investment, pickup in exports and recovery in workers' remittances.
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 Government reiterated its commitment to stay on
path of fiscal consolidation supported by increase in 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.
The Mission was pleased to visit Pakistan after a gap of 4 years
in improved secure environment. The Fund and Pakistan authorities will continue
discussions during Article IV consultations tentatively scheduled for first half of
2018.
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