IMF Latest Suggestions for Pakistan
International Monetary Fund Suggested Pakistan – May 18-25
An International Monetary Fund (IMF) mission led by Mr. Nathan Porter held both in-person and virtual discussions in Doha, Qatar with the Pakistani authorities during May 18-25 on policies to secure macroeconomic stability and support sustainable growth in Pakistan & suggest following:
- Contractionary policy _ Decrease government spending or increased taxes to combat rising inflation
- Devaluation of exchange rate (make exports cheaper – imports more expensive)
- Reduce domestic consumption and spending on imports (e.g. tight fiscal policy/higher taxes)
- Supply side policies to improve the competitiveness of domestic industry and exports.
Pre – Conditions for the Next $ 1 billion – Not Promised
The team emphasized the urgency of concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve program objectives.”
“The IMF team looks forward to continuing its dialogue and close engagement with Pakistan’s government on policies to ensure macroeconomic stability for the benefit all of Pakistan’s citizens.”
Pakistan’s Money Masters & their game plan yet to be discovered in coming days – let’s hope for the best..