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| October 23, 2003 | Thursday | Sha’aban 26, 1424 |
Reforms fragile, says IMF
ISLAMABAD, Oct 22: The International Monetary Fund (IMF) has said the political backdrop for reforms in Pakistan remains fragile and the government could be restrained to move ahead given the need to preserve social stability.
Shigemitsu Sugisaki, deputy managing director of the IMF, said that such fragility could be exploited by the opponents of reform, and the government might feel constrained in its ability to move ahead.
Speaking at a seminar recently held in Singapore, the IMF official stressed the importance of an active and informed public dialogue on reforms to help overcome such resistance. The PRSP should be a central part in such a dialogue.
He depicted an optimistic view about the prospects for global economic recovery seen in recent months, notably in the United States and the emerging market economies of Asia, but also in Japan where growth has exceeded expectations. Even in the euro area, where growth remains weak, there are some signs that the worst may be over.
Asia, he said, remains a bright spot in the global economic picture, and the Asia-Pacific region is again set to be the world’s fastest growing region. Growth in South Asia region is expected to be about five per cent this year, and increase to nearly six per cent next year.
He, however, also identified challenges, saying that the strength of the recovery in global investment remains uncertain.
The IMF deputy director said key ingredient of new reforms should be improved mobilization of tax revenues in order to generate the resources needed to help fund higher social spending on health and education and increased investment in basic infrastructure.
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