IMF Agreement To Help Boosting Pakistan's Economy: President KATI

President of the Korangi Association of Trade and Industry (KATI), Faraz-ur-Rehman on Thursday said that agreement with International Monetary Fund (IMF) would bring stability to the economy and enhance fiscal capacity of the government

KARACHI, (UrduPoint / Pakistan Point News - 13th Jul, 2023 ) :President of the Korangi Association of Trade and Industry (KATI), Faraz-ur-Rehman on Thursday said that agreement with International Monetary Fund (IMF) would bring stability to the economy and enhance fiscal capacity of the government.

President KATI, in a statement issued here, highlighted the positive impact of receiving immediate financial assistance, including $1.2 billion from the IMF and $2 billion from Saudi Arabia and said that it helped stabilise Pakistan's foreign exchange reserves.

He emphasized that the IMF agreement had successfully averted the risk of default, providing a much-needed boost to the country's economy while the aid package of over $8 billion from various other countries would further bolster Pakistan's foreign exchange reserves and strengthen value of the national Currency.

However, Rehman cautioned that the IMF's conditions, particularly related to power prices, would increase inflation and raise the cost of production for industries while lifting of import restrictions might put pressure on the value of the Dollar once again.

Rehman emphasized the need to provide immediate support to the export industry to generate higher income and urged the government to seize the opportunity to implement concrete measures aimed at improving the economy and expanding the tax base in Pakistan.

Restoring the confidence of overseas Pakistanis would be a crucial step to increase remittances, which played a vital role in reducing the trade deficit during challenging times, he noted.