International Monetary Fund (IMF) Country Director Mahir Binici stated on Thursday that Pakistan's economic growth rate is rising from 2% to 3.5%. Speaking at a conference hosted by the Sustainable Development Policy Institute (SDPI) in Islamabad, Binici described this progress as a significant development and a historic turning point for the country.
Binici reported that Pakistan has moved from an economic crisis toward stability as economic reforms are being implemented. While welcoming the progress made despite the crisis in the Middle East, he stated that Pakistan must sustain its economic growth momentum. He emphasized that increasing exports is essential for creating more employment opportunities.
To strengthen revenue generation, Binici called for continued efforts to increase tax collection and improve the tax-to-GDP ratio, noting that the government needs to continue increasing taxes. He also stated that funding for public projects and infrastructure development must be maintained. Binici credited the National Tariff Policy with contributing to the economy's improvement and noted that the IMF would continue working with the country over the long term. He added that meetings with Pakistani authorities to increase tax revenues have been held and that serious efforts to improve the economy have been underway for several months.
Also addressing the conference, Asian Development Bank (ADB) Country Director for Pakistan Dr Emma Xiaoqing Fan stressed the necessity of providing greater growth opportunities to the private sector. Fan stated that a stronger private sector would help Pakistan become more capable of increasing exports.
To boost exports, Fan said it is necessary to reduce industrial costs. She also advocated for providing women with greater opportunities in skills training, pointing out that more than half of Pakistan's female population is currently unable to contribute to economic development. Additionally, the ADB country director called for increased access to loans for the private sector, specifically for women entrepreneurs, to support their business activities.
