Islamabad, Oct 3: Nathan Porter, the International Monetary Fund’s (IMF) Mission Chief for Pakistan, recently indicated that the current loan program might be the last for the country if it effectively implements all recommended economic reforms.
In an interview with Voice of America, Porter discussed Pakistan’s economic challenges and the IMF’s role in stabilizing the economy, confirming that the First Review of the loan program will commence in December and is expected to conclude between March and April 2025.
Following the approval of the $7 billion IMF program, Prime Minister Shehbaz Sharif expressed that this could be Pakistan’s final program, a sentiment echoed by Porter, who emphasized that this could be achievable if Pakistan commits sincerely to reform. He noted that Pakistan has experienced a degree of stability following the economic turmoil of mid-2023.
Porter highlighted the IMF’s priorities, including maintaining a stable exchange rate, implementing sound fiscal and monetary policies, and fostering private sector growth.
He dismissed claims that the program is excessively stringent, asserting that the IMF tailors loan programs to meet the specific needs of each country.
Regarding Chinese loans to Pakistan, Porter reiterated the IMF’s consistent stance on international loans. He underscored the necessity of establishing an effective tax system that particularly targets the agriculture, retail, and property sectors to relieve financial pressure on ordinary citizens.
Porter also attributed the decline in foreign investment to excessive government intervention, recommending reduced involvement, public institutional reforms, and lowered power generation costs to attract more investment. The IMF plans to publish a detailed report addressing these concerns soon.
