Inside Financial Markets
IMF Board lauds Pakistan - Inside Financial Markets

IMF Board lauds Pakistan

Pakistani continued to make satisfactory progress under the IMF program
Pandemic continues to pose challenges

Policies have been critical in supporting the economy and saving lives and livelihoods
Pakistan continued to advance their reform agenda in key areas
Key areas addressed: central bank autonomy, reforming corporate taxation
Bolstering management of state-owned enterprises and regulation in the power sector
Fiscal performance in the first half of FY 2021 was prudent, providing targeted support and maintaining stability

Going forward broadening the revenue base, managing spending and securing provincial contributions
These steps to help achieve a lasting improvement in public finances and place debt on a downward path
Reaching the FY 2022 fiscal targets rests on the reform of both general sales and personal income taxation
The current monetary stance is appropriate and supports the nascent recovery
Entrenching stable and low inflation requires a data-driven approach for future policy rate actions
Further supported by strengthening of the State Bank of Pakistan’s autonomy and governance
The market-determined exchange rate remains essential to absorb external shocks and rebuild reserve buffers.

Recent measures have helped contain the accumulation of new arrears in the energy sector
Management improvements, cost reductions, regular tariff adjustments, and better targeting of subsidies

Syed Zaki Hussain

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)