Miftah sees ‘opportunity’ in IMF deal

Former finance minister Miftah Ismail has said that the $3 billion agreement with the International Monetary Fund (IMF) is another opportunity to make necessary reforms, adding that unless reforms are introduced Pakistan will always remain in need of creditors.

“We must recognise that this IMF deal gives us yet another chance for making fundamental reforms. Unless we undertake these reforms, Pakistan will remain at the mercy of multilateral lenders and the people of Pakistan will continue to pay for the structural and governance failures of their governments,” he tweeted.

The former finance minister commended Prime Minister Shehbaz Sharif for reaching the accord with the global money lender.

Miftah maintained that agreement would be the “best insurance” against default, hoping that the country would not go bankrupt and the hoarding of dollars would decrease.

Also read: Pakistan, IMF reach staff-level pact on crucial $3 billion bailout

“Now InshaAllah the clouds of default will recede, demand for hoarding dollars will slowly decrease, and there will be renewed hopefulness and vibrancy in the business climate.”

Pakistan secured a badly-needed $3 billion short-term financial package from the IMF on Friday, giving the economy a much-awaited respite as it teeters on the brink of default.

The IMF said it had reached an agreement on the deal with the 220 million nation, which will now be subject to approval by its board in July.

The new nine-month standby arrangement was struck hours before a current IMF agreement expires, offering a relief to the country's acute balance of payments crisis.

The premier said it would put Pakistan "on the path of sustainable economic growth".

With sky-high inflation and foreign exchange reserves barely enough for a month of imports, analysts say the economic crisis could have spiralled into a debt default in the absence of the bailout.