September 27, 2020

Pakistan Need To Implement Structural Reforms To Make Economy Competitive: Jihad Azour

IMF’s Middle East and Central Asia Region Director Jihad Azour, while addressing a press conference said that the country needs to strengthen institutional reforms and adopt the longstanding structural reforms to make the economy more competitive. He said that the economic corporation between the federal and provincial levels needs to improve. He added that, “The structural reforms that will allow Pakistan’s economy to be more competitive need to be observed by addressing some of the longstanding issues related to the weaknesses.” He further said that, “Pakistan should address some of the legacies of the past like, for example, in the energy sector, and also strengthen institutions providing the right legal framework for the Central Bank for the power sector as well as other entities.”

He added that the reforms being implemented in Pakistan under the IMF program are the way forward. He added that IMF reforms are the right way for Pakistan to achieve macro-economic stability. He said that the IMF would visit the country by the end of the month for the first review, He said that, “So far, the progress that has been achieved goes in the right direction. It’s too early to give an assessment. We need to wait for the mission to go there and do due diligence work on the ground.” He further added that, “It’s been three months since the beginning of the program; it looks like things are going in the right direction.”

He said that the program has two important objectives. He said that, “One is macro-economic stabilization for which there are several steps taken by the central bank on the finance ministry on the fiscal side. The other and more important is the Structural Reforms that would allow the economy to be more competitive.”

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