The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Friday that the approval of the first review by the International Monetary Fund is an encouraging development.
He said that this approval is a strong endorsement of the current government’s policies and highlights the unwavering confidence that international institutions place in our economic strategy.
Mian Zahid Hussain said that in addition to the success of the IMF’s first review, the international organization’s review mission has also agreed on a new agreement of $1.3 billion to address the problems of climate change, which is encouraging.
Talking to the business community, the veteran business leader said that the Prime Minister has rightly acknowledged the valuable services of the Army Chief in this regard, which are very pleasing.
He added that the IMF has expressed satisfaction with the government’s efforts to improve Pakistan’s economic situation in its statement.
The lender said that a new 28-month agreement had been reached with the Pakistani authorities after the first review of the 37-month agreement and under the international organization’s reform program.
He said that after the staff-level agreement between Pakistan and the IMF, its implementation will begin with the approval of the IMF’s Executive Board.
The business leader said that if both these agreements are approved, Pakistan will get $2.3 billion in loans.
Mian Zahid Hussain said that this time, the IMF is not content with just giving loans to improve Pakistan’s economy but is also pressing for reforms to save the country from repeated economic challenges.
He said the government of Pakistan is also cooperating fully with the IMF instead of playing tricks. The economic situation is improving rapidly with the IMF reforms, but the government still has many milestones to cross.
Mian Zahid Hussain said that the government should exercise all possible caution in using resources, and the purpose of expenditures should be constructive. The capital losses should be stopped entirely, and the volume of expenditures made under political compulsions should be kept to a minimum, he demanded.
Mian Zahid Hussain said that for economic development, priority should be given to reducing electricity and gas tariffs, cutting tax rates, improving refund issues, expanding the tax net, and selling failed government institutions. Electricity and gas theft and bill defaults should be strictly prevented.
Mian Zahid Hussain said that strict technology-based measures are also necessary to eliminate water shortages, build dams, end political chaos, and combat terrorism.
Laws also need to be improved so that Pakistanis invest in their own country instead of other countries, which will increase economic activities, generate employment, and boost revenue.
He said foreign investors will also turn to Pakistan only when things improve. Mian Zahid Hussain further said that some of the IMF reform targets, including the privatization of PIA and Discos, have not yet been met.
He warned that until all such targets are implemented, the country will continue to lose trillions of rupees annually and will have to depend on new loans to run the country.
