KARACHI: There is no possibility of default in the near future as Pakistan’s economy is steadily improving, IMF’s Resident Mission Chief, Dr Tokhir Mirzonev said on Thursday.

He was speaking at a seminar organised by Karachi University’s Applied Eco­nomic Research Centre (AERC), a press release said.

Dr Tokhir also called for removal of subsidies in the public sector.

He said in 2016 Pakistan’s economic growth rate is 4.6 per cent while India leads the region with 7.5pc; Bangladesh interestingly has a better growth rate of 6.8pc from China’s growth rate of 6.3pc.

“Pakistan’s inflation rate and budget deficit have also declined which is a sign of economic growth,” he said.

“Tax revenue collection has improved and rose to 11pc but it must be raised to at least 20pc,” he added.

“The International Monetary Fund programme in Pakistan started in 2013 to help the country get out of the financial crisis. Of the 6.7 billion dollars; 5.2bn dollars have been disbursed to date,” he said.

The programme has structural reform priorities in the sectors of energy, tax to GDP ratio, privatisation of public sector enterprises and lastly improving the business climate and environment.

The IMF resident chief added that Pakistan’s foreign debt is around 64pc of its total GDP which is not a very concerning ratio.

Published in Dawn, March 25th, 2016