Synopsis
The IMF has urged Pakistan to stay on track with its bailout commitments while addressing the private sector's calls for public-private partnerships to stimulate job creation and economic growth. This comes as the country faces rising unemployment and declining business opportunities.Key Takeaways
- IMF stresses commitment to bailout plan
- Public-private partnerships seen as a solution for job creation
- Economic growth in Q1 was only 0.92%
- Government insists reforms will yield long-term benefits
- Focus on structural reforms to achieve sustainable growth
Islamabad, Jan 29 (NationPress) The International Monetary Fund (IMF) has advised Pakistan to stay committed to its bailout strategy and obligations amidst rising calls from the private business sector for increased opportunities and job creation through public-private partnership initiatives.
Mahir Binici, the newly appointed IMF Resident Representative for Pakistan, has emphasized the importance of implementing reforms, which he believes will yield long-term benefits for the populace.
Pakistan needs to maintain its trajectory and be steadfast in its program goals. Moreover, it must adopt a cautiously optimistic approach and exercise patience to ensure the successful enactment of reforms that will benefit the people, Binici stated at a conference named 'Dialogue on Economy' hosted by the Pakistan Bar Council (PBC).
His remarks come as the business community in Pakistan is voicing increasing complaints, concerns, and suggestions to both provincial and federal authorities, underscoring the urgent need for greater public-private collaboration.
Arif Habib, a prominent stock trader and founder of the Arif Habib Group, urged the Shehbaz Sharif government to promptly recognize the necessity of advancing a public-private partnership framework.
The first quarter saw only a 0.92 percent growth rate. The unemployment rate is rising swiftly, and opportunities for the business sector are dwindling. Many businesses are either closing down or scaling back operations due to substantial losses, Habib remarked during a meeting with Chief Minister of Sindh Province Murad Ali Shah and PPP leader Bilawal Bhutto Zardari.
The government, however, asserts that the economic crisis cannot be resolved overnight and that the benefits of reforms will become evident in due course.
There is no quick transition from stability to growth. We must alter the economic framework to prevent another balance of payments crisis following any new growth surge, noted Finance Minister Muhammad Aurangzeb.
The IMF will ensure that Pakistan honors its commitments and adheres to the IMF program. It will not permit any new measures that could jeopardize the program's integrity. The aim of the IMF program is to uphold economic stability through structural reforms, which includes implementing additional taxes on the salaried class and utility bills, explained economist Shahbaz Rana.
Binici also reminded Pakistan to prioritize the reform agenda rather than seeking stability without necessary adjustments.
The goal is to achieve stronger, more sustainable, and inclusive growth. Sustainable growth can be realized by reducing economic distortions, ceasing state interventions, and eliminating various concessions, paving the way for more resilient economic development, he concluded.
