IMF blames PTI, N-League Governments for Economic mess

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IMF blames PTI, N-League Governments for Economic mess

In its Staff Report for $6 billion external funding package for Pakistan, International Monetary Fund has tacitly blamed two political governments of the Pakistan Tehreek-e-Insaf and Pakistan Muslim League-Nawaz inadequate policy action and misaligned policies, respectively, for the economic troubles the country is currently facing.

The IMF staff report while highlighting the background of economic troubles of the country cited how measures for stabilization of the economy were delayed blaming PTI government without naming it.

Without taking any names, IMF staff report also lashed at Policies of PML-N citing that Economic policies in that era were misaligned by running Large Fiscal Deficits, expansionary Monetary Policy, persistent Overvalued Exchange Rate, and consumption led short-term growth fueling external and national debt.

IMF also criticized the government’s indecision to privatize loss-making government entities including PIA and Steel Mill. The IMF mentioned that lack of progress in bringing structural reforms keep hampering investment and allows loss-making State Entities to linger.

IMF mentioned that reasons of economic challenges Pakistan facing is due to Internal factors, rise in oil prices and limited inflows of Foreign Capital.

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