Pakistan has tough few years without IMF, British Chief Economist
Instead of the IMF, Pakistanis are more consumers than producers who are responsible for economic crises. Photo: X
Islamabad: Professor Adnan Khan, Chief Economist at the UK’s Foreign, Commonwealth and Development Office, says Pakistan’s next few years look tough without an IMF programme, partly because of the widening fiscal gap and balance of payments crisis.
In an interview to The Express Tribune, Professor Adnan Khan said that the IMF program is meant to make reforms to get out of the crisis, the program itself cannot be a precursor to long-term economic growth, however, the IMF’s stabilization program imposes some important conditions. which along with other reforms can become precursors of economic growth.
On the IMF’s 6 billion dollar program in three years, he said that the need of Pakistan’s economy is much bigger than the size of this program, but the IMF is important because the traditional supporters of Pakistan are China and the Gulf countries. Look at
He said that the IMF’s umbrella role may not work this time as no foreign commercial bank has given new loans despite the successful completion of the recent standby arrangement, nor have global rating agencies negatively rated Pakistan. An indication of improvement.
He said that the IMF’s role as an umbrella can only work with relevant reforms that are necessary to end economic distortions so that investment in productive sectors can increase. He said that the IMF is not responsible for Pakistan’s crises because the reason for this is that Pakistanis are more consumers than producers.
Adnan Khan said that the IMF program is for short-term stability and to overcome temporary problems, while we have to deal with our deep problems, the current level of revenue is not enough to pay the debts. The MF program has been used for long-term reforms, and if Pakistan can do so, it may exit the program at some stage.
On foreign investment, he said that local and foreign investors will come here for investment only when there are opportunities, while mentioning the meeting with the businessmen of Karachi and Lahore, he said that the local investors are in “watch and wait” mode. I am, they don’t want to waste their money.
Pakistan has tough few years without IMF, British Chief Economist