ISLAMABAD: Interna­tio­nal Monetary Fund (IMF) Managing Director Chris­tine Lagarde said on Tuesday that corruption or the perception of corruption could only be eradicated through honesty, transparency and accountability.

“Transparency, facts on the table are available so that there can be accountability — that is the best way to address it,” she said at a joint press conference with Finance Minister Ishaq Dar at the end of her two-day visit to Pakistan.

The IMF head said corruption, whether real or perceived, was harmful to the economy because it hampered foreign direct investment and was a burden on the ambitions of the youth.

“It is not a matter of persecution but a question of honesty, transparency and accountability whether it is incidentally in Panama or Bahamas or whatsoever,” she said in reply to a question about the involvement of Pakistani leaders in Panama Papers scandal.

Ms Lagarde said the progress of technology and the speed of information — “how it is collected and disseminated — is going to make it possible that nobody can run or hide with corruption”.

“It was in this context that Pakistan’s signing of avoidance of double taxation agre­ement with the Organisation of Economic Cooperation and Development (OECD) and a move towards the anti-bribery pact was a demonstration that it was a new attitude that will lead to sharing of knowledge and cure the menace,” she said.

Finance Minister Dar said there was no justification for sit-ins and agitation when the matter [Panamagate scandal] was being looked into by the apex court with a hearing fixed for Nov 1.

“It is totally uncalled for and unjustified. It causes inconvenience to people and hurts business and economy,” he said, referring to the PTI’s planned “lockdown of Islamabad” on Nov 2.

Mr Dar said that in the light of the Supreme Court’s opinion an improved version of the inquiry commission law had been prepared and it was expected to be approved by the cabinet in its forthcoming meeting.

In reply to a question about Pakistan’s rising debt, Ms Lagarde said there were not many options to reduce debt except increasing taxes and reducing expenditures, though there were not many areas of improvement in the economy.

She congratulated Pakis­tan on successfully completing the IMF-supported economic reforms programme and said this was because of its ownership by the political leadership.

“Higher and more sustainable growth will also require completing important structural reforms in the energy sector, tax policy and administration, ending losses in public enterprises and making a sustained effort to improve governance and foster a dynamic and export-oriented private sector. At the same time, increased focus on improving health, education and closing the gender gap and providing social protection can ensure that gains in living standards are widely shared,” she added.

According to Ms Lagarde, much has been achieved and much more remains to be done, “so this is Pakistan’s moment of opportunity to forcefully address remaining economic challenges and lay the foundation for more private sector job creation and higher living standards for all segments of society”.

The IMF head said she had advised Prime Minister Nawaz Sharif and his team to continue strengthening resilience by building fiscal and external cushions to be adequately prepared for future economic shocks.

Published in Dawn, October 26th, 2016

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