An International Monetary Fund (IMF) programme, if effectively implemented, will serve as a catalyst for economic stability, growth, and long-term development, said Mian Kashif Ashfaq, CEO of the Pakistan Furniture Council (PFC).
During a PFC board of directors meeting, Ashfaq highlighted the benefits of an IMF bailout package for Pakistan. One of the primary benefits is the immediate financial support it provides to address the country’s balance of payment crisis and economic instability, he said in a press release.
The package offers a substantial infusion of foreign exchange reserves, which can stabilise the currency and prevent further decline in its value.
“This stability fosters confidence among investors, both domestic and foreign, and helps fortify economic stability. By implementing economic reforms, such as fiscal consolidation measures, tax reforms, privatisation of state-owned enterprises, and improvements in governance, Pakistan can achieve long-term economic stability and sustainable growth,” Ashfaq emphasised.
Furthermore, an IMF bailout demonstrates the international community’s support for the country’s economic policies and enhances investor confidence. This confidence attracts foreign direct investment (FDI), as investors perceive the country as more stable and less risky. Increased FDI has the potential to spur economic growth, create jobs, and enhance productivity in various sectors, contributing to long-term development, he said.
Ashfaq also highlighted that the package would improve Pakistan’s access to other sources of financing, including multilateral development banks and international capital markets. By demonstrating a commitment to economic reforms and meeting IMF targets, Pakistan can enhance its creditworthiness and attract additional funding from other sources.
Published in The Express Tribune, July 4th, 2023.
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