Karachi: The President of the Korangi Association of Trade and Industry (KATI), Faraz-ur-Rehman, expressed his satisfaction with the recent approval of the International Monetary Fund (IMF) in the Executive Board meeting. He highlighted the positive impact of receiving immediate financial assistance, including $1.2 billion from the IMF and $2 billion from Saudi Arabia, which has helped stabilize Pakistan’s foreign exchange reserves.
Rehman emphasized that the IMF agreement has successfully averted the risk of default, providing a much-needed boost to the country’s economy. Furthermore, he pointed out that the aid package of over $8 billion from various other countries would further bolster Pakistan’s foreign exchange reserves and strengthen the value of the national currency.
However, Rehman cautioned that the IMF’s conditions, particularly related to power prices, would increase inflation. This, in turn, would raise the cost of production for industries. Additionally, the lifting of import restrictions, as mandated by the IMF, is expected to put pressure on the value of the dollar once again.
Rehman urged the government to seize this opportunity to implement concrete measures aimed at improving the economy and expanding the tax base in Pakistan. He emphasized the need to provide immediate support to the export industry to generate higher income. Restoring the confidence of overseas Pakistanis was also highlighted as a crucial step to increase remittances, which play a vital role in reducing the trade deficit during challenging times.
Overall, Rehman believes that the IMF agreement will bring stability to the economy and enhance the fiscal capacity of the government.
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