The Governor of The State Bank of Pakistan has reason to believe that the latest IMF loan programme will be the last, as the recent structural reforms being carried out with IMF’s help have enabled the economy to stand on its own feet.
“The goal is to have… foreign exchange reserves that are sufficiently high and with that we will not go back to the IMF for another programme,” said Reza Baqir.
Baqir thinks Pakistan should not go back to IMF after the latest programme, and therefore high reserves in the economy must be maintained to avoid it.
He added that reforms for the rupee-dollar exchange rate would help keep the reserves at the optimum level.
The IMF can also be avoided in two other ways, like raising domestic saving and investment rates as well as the government completely halting loans from the Central Bank.