IMF Deal Not a ‘Lasting’ Solution: Planning Minister

Federal Minister for Planning Development & Special Initiatives Ahsan Iqbal expressed satisfaction with the recent International Monetary Fund (IMF) package, which alleviated concerns of an immediate default. However, he emphasized that the deal should be seen as a temporary relief and mere a breather, rather than a lasting solution. During the “Beyond IMF Agreement: Challenges and Opportunities for Pakistan” Twitter space organized by the Planning Ministry, the minister conveyed his views to a audience. The minister described the recent agreement with IMF as a much-needed respite that restored investor confidence. However, he stressed the need for structural reforms to ensure long-term sustainability and to capitalize on this breathing space. The planning minister pointed out that the deal was necessary due to a severe balance of payment crisis in 2022, caused by poor policies of the previous government. He noted that the country experienced its worst deficit of $50 billion after allowing imports worth $84 billion. He emphasized the importance of introspection and pursuing development for the country, rather than merely celebrating the deal. He warned that if the business continues as usual, the positive momentum could be lost. He stressed the necessity of implementing structural reforms to guide the country onto a sustainable path and achieve desired results in the long term. These policies should be maintained regardless of which government is in power, he added.