IMF loan tranche to reinvigorate economy

Businessmen urge govt to focus on reforms, stabilise rupee

LAHORE:

Leading businessmen, while hailing the approval of a $700 million loan tranche by the IMF as “excellent news” for Pakistan, have voiced hope that the much-awaited assistance will reinvigorate economic indicators, instill confidence in investors, stabilise the rupee and further push up the stock market.

In a statement, office-bearers of the Lahore Chamber of Commerce and Industry (LCCI) including its President Kashif Anwar and Senior Vice President Zafar Mehmood Chaudhry, commended the current caretaker government for its efforts.

In the wake of the positive development, the LCCI leaders urged authorities to focus on two key areas for economic reforms. Firstly, they called for making efforts to expand the tax base in order to contribute to overall economic stability. Secondly, they stressed the need for further stabilising the Pakistani rupee.

Read IMF board okays $700m loan tranche

They suggested a currency exchange rate in the range of Rs175 to Rs200 per dollar and outlined multiple benefits of such an “ideal rate”, which included a fall in inflation, lower interest rates and more affordable cost of doing business.

Other potential positive outcomes of the exchange rate adjustment are a decrease in the cost of imported goods and a more competitive market.

Published in The Express Tribune, January 13^th, 2024.

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