By Ali Imran
ISLAMABAD: The International Monetary Fund (IMF) has pinpointed several loopholes in Pakistan’s export strategy, attributing them to the country’s inability to boost its exports, according to media reports.
In a report submitted to the Pakistani government, the IMF highlighted significant weaknesses in Pakistan’s trade performance. Key issues identified include restrictions on payments, obstacles in imports, and unfavourable exchange rates.
The IMF suggests that Pakistan should consider global market trends in both exports and imports to enhance its competitiveness.
To improve export performance, the IMF recommends further value addition in local industries through the adoption of modern technology.
This would increase production efficiency and add value to Pakistani products.
The report draws comparisons with other countries, noting that Pakistan’s exports are significantly lower than those of Bangladesh, India, Vietnam, and Thailand.
It suggests that Pakistan should diversify its export sectors beyond textiles and agricultural products. The IMF has requested Pakistan’s economic team to develop a comprehensive economic plan addressing these challenges to boost exports.
Earlier, The International Monetary Fund (IMF) Executive Board is expected to convene in mid-August to discuss the $7 billion bailout package for Pakistan.
A staff-level agreement between Pakistan and the IMF was reached on July 12.
Sources inside the Ministry of Finance indicate that the IMF board is expected to give its final approval within four to six weeks following the staff-level agreement.
However, they added that Pakistan must secure external financing assurances before the board meeting.
Discussions on funding to address climate change and natural disaster risks are anticipated soon.
The IMF has indicated consideration of Pakistan’s proposed request for climate financing.
Sources further disclosed that Pakistan must identify long-term priority projects related to climate change. The IMF’s Resilience and Sustainability Facility (RSF) programme offers affordable, long-term financing. To achieve these goals, Pakistan will need to collaborate with other global institutions, according to the Ministry of Finance.
