DUBAI: Pakistan and International Monetary Fund have successfully completed negotiations on the Tenth Review under the 3-year Extended Fund Facility programme.
It will pave the way for release of next tranche of about US$500 million.
This was stated by Finance Minister Ishaq Dar and IMF Mission Chief Herald Finger at a news conference in Dubai on Thursday.
They said completion of the Tenth Review is indicative of government’s commitment in implementing structural reforms in areas of taxation, energy, financial sector and public sector enterprises. Speaking on the occasion, Finance Minister said Pakistan is on the path of economic trajectory with all indicators showing economy moving in the right direction.
“The government has initiated structural economic reforms, showing positive results,” he said.
He said efforts are afoot to enhance GDP growth to five percent.
He said 8.8 percent fiscal deficit inherited by the government has been brought down to 5.3 percent and it will further be sliced to 4.3 percent.
Ishaq Dar said the foreign exchange reserves have risen to over twenty billion dollars despite heavy payments.
About China-Pakistan Economic Corridor project, the Minister said it will contribute a lot to furthering economic development. The Minister said reforms process is continuing to improve the efficiency of the government institutions.
The Minister said chemical, fertilizer and automobile sectors have also registered growth and the targets will be achieved before time.
Regarding energy sector, the Finance Minister said Prime Minister Nawaz Sharif has constituted Cabinet Committee on Energy to resolve the energy issues.
The Finance said some elements are trying to mislead PIA employees on the privatization issue.
He said retrenchment is not government’s policy. However, the government wants this loss making unit to become a profitable entity through strategic partnership.