Growth figures: Finance minister dismisses IMF analysis
Pakistan’s Finance Minister Hafeez Shaikh called the recent IMF analysis of Pakistan’s economy by and large, “their own point of view” on Friday.
The finance minister spoke at the Carnegie Endowment for International Peace in Washington DC on Friday morning before leading Pakistan’s side in a working group meeting on economics and finance later in the day.
According to an official, ongoing US projects in Pakistan in the fields of energy and development were to be discussed in the US-Pakistan working group on economy and finance, including the Diamer-Bhasha dam project. The US side was led by Deputy Secretary of State Tom Nides.
A State Department spokesperson said that the working group meeting would focus on expanding bilateral economic engagement, particularly in trade, investment, and regional integration.
The International Monetary Fund released a report on Thursday detailing problems with Pakistan’s economy, urging the country to undertake deep structural reforms. The report warned that that the country’s economic growth would be insufficient in improving its living standards.
Shaikh said he had to be careful with his comments on the topic. “In my situation, I cannot keep talking publicly about a very important partner’s comments, they have to be nuanced.” He added that they have the greatest regard for the International Monetary Fund, and values their relationship with Pakistan.
He also said that while the IMF may think that Pakistan’s economy will only grow by a little over 3%, he believes that it will grow at a rate of over 4%. Sheikh said they would be meeting the IMF to narrow the gaps as well.
Also on Thursday, Shaikh met with outgoing US Special Representative to Pakistan and Afghanistan Marc Grossman. Laura Lucas, a State Department spokesperson, told The Express Tribune that the meeting was to “review progress in achieving a bilateral relationship based on the shared pursuit of our mutual interests.”
The spokesperson said the two officials reviewed the recent meeting of the law enforcement working group, and the upcoming working group discussions, including on economics and finance, and energy.
Published in The Express Tribune, December 1st, 2012.
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I say even IMF has being very optimistic. Pakistan has inflated its M2 money supply by 17% so far for FY12. And the way GDP is calculated, it doesnt account for the inflated money supply. Adjust the GDP with the money supply and you will see that Pakistan GDP has been -7% for the past 4 years in real terms.
Maybe Hafeez Sheikh may disagree with my figure of 7% but may settle for -6%...
Does this man even pay his taxes?
Shaikh Sahib why you do this to us. Please request PM to add electricity grids to Pakistan's 70% population in Punjab, living under tons of load-shedding from electricity to gas. IMF is right, your goverment needs to get it done to grow big. 8% is easy given people like me are working in Pakistan. I grow at 80% if I take my protien shake and work out. Pakistan's economy needs a protien injection, and a work out. i.e. we need FDI and some entreprenuers, and it is simple, in current electricity, gas, shortfalls, we're just down for another 8 years - that bad or what!
how accurate have your previous predictions been Mr Shiekh? one must see ones own record on the topic before passing any comments
This is rather amusing.
Is a growth rate of 4% (if it is achieved) something to be happy about?
IMF estimates Pakistan's potential growth rate at around 7-7.5% per annum. We have and will continue to operate at well below our potential unless structural reforms are implemented and the security situation improves.
Why fool ourselves with optimistic figures?