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Article

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The International Monetary Fund's (IMF) executive board is set to meet next week to discuss the approval of a three-year Extended Fund Facility (EFF) for Pakistan ending in the fiscal year 2027-28 — the 24th time the country is going to enter into an agreement with the lender.Working around these targets, the main endeavour is to work systematically on enhancing the capacity to generate additional net foreign exchange earnings compared to the current levels. Pakistan has registered a negligible current account deficit in FY24 and less than 1 per cent in last four years except 2022. The objective is to turn it around into a surplus of $6-9bn by FY28. Is this feasible or, as naysayers would argue, kite flying? Exports of goods recorded a 14pc growth rate of merchandise exports in August. (In FY22, the increase was 26pc). If this average rate of 14pc is maintained for the next four years, There seems to be a broad consensus that it is in Pakistan's best interests to exit from the IMF programme. The reasons are quite obvious — the loss of autonomous decision-making by the sovereign, inability to set its own priorities and their phasing, timing and sequencing, and getting out of a straitjacket framework of short-term performance criteria, structural benchmarks agreed with the IMF.

Publication Source

Consortium for Development Policy Research (CDPR)

Publication Date

3-1-2025

Pages

6

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