Inadequate government policies blamed by IMF for economic crisis

  • Thu,11 Jul 2019 10:51:05 AM

Islamabad, July 11 (BAN/ AD): As Pakistan is going through economic crisis and receiving IMF bailout package few days back, IMF has now come out with report in which it has blamed governments of the Pakistan Muslim League-Nawaz and Pakistan Tehreek-i-Insaf for inadequate policy.

Although IMF report does not directly blame the two governments, the IMF held the PML-N government responsible for unbalanced policies and unfinished reforms.

The report mentions “Misaligned economic policies, including large fiscal deficits, loose monetary policy, and defence of an overvalued exchange rate, fuelled consumption and short-term growth in recent years, but steadily eroded macroeconomic buffers, increased external and public debt, and depleted international reserves.”

PTI government has been blamed for delayed and yet unsatisfactory policy action for correction. The staff report further states “Similarly, fiscal slippages in the first half of the fiscal year have been significant despite the adoption of two budget amendments. Finally, increases in power and gas tariffs have not been sufficient to stem the accumulation of quasi-fiscal losses.”

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