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IMF Approves $133 Million Credit For Pakistan
ISLAMABAD, March 31 (IslamOnline & News Agencies) - As Pakistan's economy is showing signs of improvement, the International Monetary Fund (IMF) executive board on Friday approved the release of a $133 million credit for the country, where it said authorities had made encouraging economic progress.
The World Bank cautioned, however, that the country must strictly implement the reforms laid down by the military regime, a senior Bank official said Saturday.
"It is for Pakistan's own benefit to ensure implementation of its ambitious reform agenda to create a good investment climate," World Bank Vice-President and Chief Economist Nicholas Stern said here.
Stern held a flurry of meetings with top Pakistani officials including military ruler general Pervez Musharraf and finance minister Shaukat Aziz during his four day stay here.
"There is so much to be done, and so many worthwhile programs and policies are being designed, that there is a danger of crowding and congestion," he told reporters.
"Establishing clear priorities and careful sequencing of the reforms is crucial."
The IMF has revived lending to Pakistan on the basis of reforms planned by Musharraf regime that emerged from a bloodless coup in 1999 pledging to make economic revival its top priority.
The IMF board, in allowing the $133 million credit, said its action would bring total disbursements for Pakistan under its current arrangement with the Fund to $324 million.
"Pakistan's achievements to date under the program ... have been encouraging," said Eduardo Aninat, deputy IMF managing director.
Stern said if Pakistan government moved forward and implement reforms strongly, it could be witnessing the beginning of a long period of sustained growth.
The Chief Economist said economic reforms program, initiated by the government, would ultimately revive the confidence of the business community and improve investment climate.
Musharraf's government has initiated steps to accelerate privatization in addition to tightening control on government spending and has tried to enhance country's exports to shore up fragile foreign exchange reserves.
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