World

IMF blames PTI, PLM-N for Pak's economic crisis

ANI | July 11, 2019 12:14 PM
Pakistan Prime Minister Imran Khan

Islamabad [Pakistan], July 11 (ANI): The International Monetary Fund has lashed out at ruling Imran Khan-led Pakistan Tehreek-i-Insaf for not adopting adequate policies to address the economic crisis in the country.

The IMF blamed the current PTI government for delayed and yet unsatisfactory policy action for correction. Hence despite some exchange rate depreciation and significant monetary policy tightening, sizeable foreign exchange interventions continued through April 2019, reported Dawn.

"Similarly, fiscal slippages in the first half of the fiscal year have been significant despite the adoption of two budget amendments. Finally, increases in power and gas tariffs have not been sufficient to stem the accumulation of quasi-fiscal losses," the IMF noted.

IMF made these remarks in its staff report on USD 6 billion bailouts to Pakistan approved by its executive board earlier this week.

The agency held the PML-N government responsible for unbalanced policies and unfinished reforms.

"Misaligned economic policies, including large fiscal deficits, loose monetary policy, and defence of an overvalued exchange rate, fuelled consumption and short-term growth in recent years, but steadily eroded macroeconomic buffers, increased external and public debt, and depleted international reserves," it said.

IMF also pointed out that dull progress in structural progress continued to hamper investment and allowed "inefficient state-owned entities (SOEs) to linger and a large informal economy to expand".

The three-year bailout package was approved by the IMF's Executive Board last week.

"IMF Executive Board approved today a three-year US$6 billion loan to support Pakistan's economic plan, which aims to return sustainable growth to the country's economy and improve the standards of living," Gerry Rice, the IMF's spokesperson had confirmed the news on Twitter on July 3.

The Asian Development Bank has also announced plans to lend USD 10 billion to Pakistan for various development projects over the next five years. (ANI)

Have something to say? Post your comment
Must Read
Interfaith Global Summit dedicated to 550th birthday anniversary of Guru Nanak Dev Ji organised
Interfaith Global Summit dedicated to 550th birthday anniversary of Guru Nanak Dev Ji organised
LPU Engineering Student bags Rs 42 lakh Job in Microsoft
LPU Engineering Student bags Rs 42 lakh Job in Microsoft
India vs South Africa 3rd Test: Play interrupted due to bad light
India vs South Africa 3rd Test: Play interrupted due to bad light
Police Force should stay fit to tackle challenges: Commissioner of Police
Police Force should stay fit to tackle challenges: Commissioner of Police
An Awareness Seminar on ‘Say to No Drugs’ by ‘Satyamev Jayate Society’ at Innocent Hearts School.
An Awareness Seminar on ‘Say to No Drugs’ by ‘Satyamev Jayate Society’ at Innocent Hearts School.
Anti-larva team detects 15 larva cases
Anti-larva team detects 15 larva cases
Aero-adventure camp at Air force station Bhisiana
Aero-adventure camp at Air force station Bhisiana
Artists of Innocent Hearts Brought Laurels to their Almamater; selected for State Level
Artists of Innocent Hearts Brought Laurels to their Almamater; selected for State Level
6325 students from 189 schools participate in mega event Sabyatech at CT Group
6325 students from 189 schools participate in mega event Sabyatech at CT Group
Airtel shuts down 3G network in Punjab, upgrades customers to high speed 4G network
Airtel shuts down 3G network in Punjab, upgrades customers to high speed 4G network
Anti-larva team detects 23 larva cases
Anti-larva team detects 23 larva cases
Closed Day for voters of Haryana working in Punjab factories
Closed Day for voters of Haryana working in Punjab factories