Saturday, 24 August 2019, 11:36:39 am
Pakistan can restore the resilience of its economy through decisive policies: Analysts
February 11, 2019

Mirza Ikhtiar Baig (Economist):

I would like to appreciate the historic address of Prime Minister Imran Khan at World Governments Summit. He represented the role of Pakistan in the region and also highlighted the investment potential in the country. He conveyed a clear message to the world community that Pakistan is a peaceful country and government is also going to promote tourism. The world community was told that the government is taking certain measures to facilitate ease to do business in Pakistan. Prime Minister is against corruption which is a motivating indicator for the foreign investors. The government initially stabilized the foreign reserves with the bailout packages from the friend countries. Now Pakistan will negotiate with IMF on easy terms and conditions.

Dr. Ashfaque Hasan Khan (Adviser to the Ministry of Finance):

Prime Minister has reiterated his commitment to introduce reforms in different fields including economic reforms. The hard IMF conditions can be painful for the people and Prime Minister wants to extend minimum burden on the public. So the terms and conditions of IMF for bailout package could be adjusted accordingly. The government and IMF will work together on reforms aimed at reducing imbalances. IMF is not going to give a lot of money and it will be nearly six to seven billion dollars. The IMF bailout package to Pakistan will give confidence to other international organizations to invest in Pakistan.

Dr. Shahid Hasan Siddiqui (Economist):

Going to IMF for a bailout package is the need of the hour. In The upcoming fiscal budget will be based on policies directed by IMF. The main condition of IMF is to reduce budget deficit. This will require strengthening institutions responsible for managing investments and infrastructure. There is significant progress toward reaching an understanding on policy priorities and reforms that could be supported by a financial arrangement with the IMF.

Dr. Noor Fatima (Economist):

Pakistan is facing current account deficit, fiscal ad trade deficit and has been trying to introduce economic reforms. This will strengthen our position to negotiate with IMF for a bailout package. Pakistan's debt transparency is an utmost prerequisite for a possible bailout package from the International Monetary Fund. The government has managed a restructuring package comprising trade finance and one-time inflows to cover $12 billion fiscal gap. The economy is going through a familiar boom-and-bust cycle that pushed it back at IMF.

Humayun Iqbal Shami (Chairman, Pakistan Economic Forum):

Pakistan has made a right and timely decision to negotiate with IMF for a bailout package. It was the need of the time as Pakistan has been facing the issue of balance of payment deficit. The main advantage of consulting IMF is that the credit rating of a country improves. The government is taking mature steps for economic revival. The IMF has also expressed flexibility in its terms and conditions for the said bailout package.

Dr. Alia H. Khan (Economist):

We have to move towards structural reforms in order to ensure foreign investment in the country. A high rate of attracting FDI reaffirms the government initiatives and long term planning for the economic prosperity. Prime Minister in his speech at World Governments Summit also focused on investment in tourism industry. The government has been pursuing an anti-corruption drive, to improve governance in the country. Pakistan's success in attracting foreign investment thus depends on its competitiveness as an investment destination relative to other countries.