IMF pledges support to Pakistan to address economic challenges

MD Christine Lagarde felicitates Pakistan on successful completion of IMF supported economic reforms package

International Monetary Fund (IMF) Managing Director Christine Lagarde has reiterated full support to Pakistan in its endeavours to address economic challenges and realise its potential only a day after she declared the country’s economy ‘out of danger’.

Lagarde felicitated Pakistan on having successfully completed the IMF supported economic reforms package as she addressed a news conference in Islamabad along with Finance Minister Ishaq Dar on Tuesday.

According to Radio Pakistan, the IMF chief said the programme helped the country achieved macroeconomic stability and provided a solid foundation to the country to go for further reforms in important sectors. “As a result of better economic performance; the country has significantly improved social protection spending,” she upheld and expressed her complete satisfaction over the gradual reduction in the power outages and better financial discipline of the power sector.



Lagarde said: “Pakistan has achieved a lot over the last few years but much more also needs to be done in the next phase to address the remaining challenges in order to ensure higher standards of living for their people.”

Meanwhile, the finance minister said besides consolidating gains of the last three years, the government would focus for the next two years on growth, creation of job opportunities, poverty reduction and creating space for social sector spending. “This has been reflected in the current year's budget, which is aimed at broadening tax net and improving financial disciple,” he said.

The minister said: “Development spending has been increased from Rs300 billion three years back to Rs800 billion this year, social safety net expenses taken from Rs40 to Rs117 billion and budgetary support for higher education has been increased substantially.”



Dar also expressed pleasure that for the first time the country has completed an IMF programme and embarked upon comprehensive economic and financial reforms.