WASHINGTON: The International Monetary Fund (IMF) has lauded Pakistan government, saying that the country’s economy has improved due to cautious monetary policies and strong capital inflows.
IMF’s Director for Middle East and Central Asia, Masood Ahmed, has said in a statement following a recent visit to Islamabad and Lahore, that the government has strengthened public finances and rebuilt foreign-exchange buffers, which are the main reasons of economic progress.
The key interest rate was slashed by Pakistan’s central bank in January to 8.5 per cent citing a slowdown in inflation. Other factors, including plummeting oil prices and declining global prices for other commodities have also contributed to the betterment of the economy.
Ahmed advised Pakistan’s government that further bolstering the revenue by broadening the tax base and improving compliance would allow it to further reduce its public debt while increasing its spending in key sectors, namely health and education.
