ISLAMABAD: Caretaker Finance Minister Dr Shamshad Akhtar on Saturday said that the caretaker set-up has introduced reforms to put the country’s economy back on track to progress, as the actions being taken are not just aimed at upcoming IMF review but to benefit nation in the long run.

The International Monetary Fund programme’s implementation was on a steady course during the first quarter of the current fiscal year, the caretaker minister announced on the sidelines of a meeting with the Korangi Association of Trade and Industry representatives, just four days before the official review of the $3 billion Standby Arrangement.

The finance minister was joined by the FBR chairman and other high-ranking tax officials at the meeting.

Dr Akhtar said the IMF team is scheduled to arrive in Pakistan on Nov 2. She said that Pakistan has successfully met all agreed-upon targets for the first quarter of FY24, and all proposed measures have been effectively put into action.

Pakistan meets all IMF targets; focus on securing funds from other multilateral institutions

The minister said the caretaker government has taken additional steps that are beneficial for the nation. “Not all our actions are solely for the IMF,” she said, adding that as it is vital for securing funds from other multilateral institutions, expected to follow shortly after the review.

The government, she said, had expedited the execution of IMF and World Bank-recommended reforms across various initiatives and an economic revival programme had been finalised.

“We will soon upload the draft programme report on the ministry website,” she said, adding that the essence of the programme is to achieve a sustainable growth led by the private sector.

She outlined key components of a strategic plan to bolster the nation’s economy, including the implementation of national credit schemes for small and medium enterprises and the establishment of an export-import bank.

On FBR’s performance, she said that tax collection in the first quarter exceeded the IMF target. She also highlighted the government’s efforts to reform state-owned enterprises.

Role of law enforcement agencies

The minister affirmed that the caretaker government is implementing stringent measures to revive the economy and expressed confidence in the rapid improvement of the country’s economic situation. She also noted significant growth in various sectors during the first quarter, indicating a robust resurgence in economic activities.

She praised law enforcement agencies for their effective crackdown on illegal currency smuggling, misuse, and hoarding within the country and its border regions.

Regarding inflation, she stated that it was on a downward trajectory. She clarified that while inflation has been reined in, it could resurface due to external factors such as rising commodity prices. Dr Akhtar disclosed that electricity and gas prices have been adjusted to reflect market rates and will continue to be revised in accordance with market fluctuations.

Minister to join UN moot in Bangkok

Dr Akhtar will join a regional gathering of ministers, policymakers, and experts in Bangkok on Nov 1 to explore a new approach to assessing the impact of investment in Sustainable Development Goals (SDGs) on public debt sustainability.

Organised by the United Nations regional commission for Asia and the Pacific (UN-ESCAP), the fourth session of the Committee on Macroeconomic Policy, Poverty Reduction, and Financing for Development from Nov 1-3 will also collect feedback on ten proposed sustainable finance principles, which encourage governments, regulators and financial institutions to leverage their resources for a net-zero transition.

Amin Ahmed also contributed to this report

Published in Dawn, October 29th, 2023