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Analysts term IMF’ successful review of Pakistan's economic reforms program a positive sign for economy
January 12, 2024

 Mirza Ikhtiyar Baig (Economist): Whenever the IMF releases a tranche to a country it conveys a positive message to the world that the economic policies of that country are on the right track. With the IMF bailout package, the stock market performs well and the rupee stabilizes as all these are interconnected. IMF released a tranche of 1.1 billion dollars to the outgoing government, 700 million for caretaker government and 1.1 billion dollars for the newly coming government. IMF program is like an umbrella that also encourages the foreign investors to invest. Basically, it is watchdog that is monitoring the economic performance of the country. I am hopeful after the completion of prevailing IMF bailout package, Pakistan will be able to sign another agreement for long term with the IMF.

Dr. Abid Qayyum Sulehri (Economist): Anything that gives the boost to the economy is fiscal discipline. The release of a second tranche of over 700 million dollars from the IMF shows how the current government has changed its approach to meet the targets of the IMF. In a short period of time, the government was able to control things including the electricity and gas tariffs. This is what is required in short to medium term plans in order to put the economy on the right track. The release of the second tranche will improve the credit worthiness of Pakistan. The credit rating will definitely improve as a result. I am hopeful that after the general elections in the country and political stability will attract huge foreign investment in the country as well.