Press Release No. 15/106

Press Release: Statement by IMF Director Masood Ahmed at the Conclusion of his Visit to Pakistan

March 11, 2015

Mr. Masood Ahmed, Director of the Middle East and Central Asia Department of the International Monetary Fund (IMF), visited Islamabad and Lahore from March 6-9, 2015, for meetings with Mian Muhammad Nawaz Sharif, Prime Minister of Pakistan, Senator Muhammad Ishaq Dar, Finance Minister, Mr. Ashraf Wathra, Governor of the State Bank of Pakistan, Mian Shehbaz Sharif, Chief Minister of Punjab, members of Pakistan’s economic team, as well as members of parliament, academics, and the business community.

At the conclusion of his visit, Mr. Ahmed made the following statement:

“It has been a great pleasure to visit Pakistan and hold productive and engaging discussions with the prime minister, the country’s economic team, members of parliament, political and provincial leaders, representatives of the business community, as well as economic thinkers and academics.

“Pakistan’s economy is improving, helped by prudent monetary and fiscal policies, strong capital inflows, robust remittances, and lower international oil prices. The authorities have made progress with consolidating macroeconomic stability, strengthening public finances, and re-building foreign exchange buffers. As a result, immediate crisis risks have greatly receded, economic growth is gaining strength, inflation is declining, and macroeconomic vulnerabilities are gradually addressed.

“The current improved economic and financial situation presents a unique opportunity for Pakistan to reinforce and build on recent stability gains to work towards achieving higher, sustainable and inclusive economic growth. This will require further bolstering government revenues through broadening the tax base and improving compliance in order to generate the resources that will allow for further reducing public debt while increasing spending in priority areas such as public investment, health and education. It will also require a further build-up of international reserves, which will strengthen Pakistan's financial resilience while supporting exports. Other key priorities include stemming the accumulation of arrears and addressing long-standing imbalances in the energy sector, restructuring and privatizing public sector enterprises; moving ahead with investment climate and trade policy reforms; and continuing with financial sector reforms to improve resilience and financial inclusion. In this context, it will be critical to protect the most vulnerable from the direct and indirect impacts of economic reforms through continued expansion of targeted social assistance.

“The IMF remains fully committed to supporting the authorities’ efforts through financing, policy advice and technical assistance, including through the ongoing Extended Fund Facility (EFF) arrangement. Firm implementation of the authorities’ reform agenda will be crucial to overcome the economic imbalances, build investor confidence, and move the country on a higher growth path, and we are looking forward to a successful conclusion of the EFF arrangement.

“Finally, I would like to thank the authorities for the constructive dialogue and hospitality.”