Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed support for a recently established Staff-Level Agreement (SLA) between Pakistan and the International Monetary Fund (IMF), facilitating the release of approximately $1.2 billion. The agreement marks a significant advancement toward maintaining macroeconomic stability, according to Atif Ikram Sheikh, President of FPCCI.
According to Federation of Pakistan Chambers of Commerce and Industry, the agreement follows the successful review of both the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). It secures the release of $1 billion under the EFF and $210 million under the RSF, providing crucial support for the economy. Mr. Sheikh emphasized that these funds would enhance foreign exchange reserves, restore market confidence, and positively influence international rating agencies and bilateral partners.
While welcoming the continuation of the IMF program, FPCCI urged the government to address structural constraints hindering the private sector. The organization called for immediate reforms to facilitate trade and industry, with a particular focus on reducing the policy rate to boost investor confidence. Mr. Sheikh advocated for broadening the tax base to alleviate pressure on compliant taxpayers, emphasizing the need for revenue mobilization efforts to include untaxed sectors.
The FPCCI also highlighted the adverse impact of policies like further tax and delayed sales tax refunds on industry liquidity. Echoing the IMF's recommendations, the organization called for institutional reforms to combat corruption, improve the rule of law, and ensure transparency in public financial management.
Senior Vice President Saquib Fayyaz Magoon noted external threats to the economy, such as rising military tensions in the Middle East and increased global freight costs, which pose challenges to Pakistan's trade prospects. He urged for domestic policies that cushion these global disruptions rather than exacerbate burdens on exporters.
The FPCCI reaffirmed its commitment to collaborating with the government to develop evidence-based policies that foster sustainable industrial growth, enhance exports, and ensure business climate resilience.
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