Pakistan economy 2013 and Nawaz Sharif

nawaz_sharifThe International Monetary Fund is paying a visit to Pakistan.  This will be the first major challenge Nawaz Sharif – the country’s new Prime Minister – will have to face as he tries to defend the policies in the Pakistan economy 2013.

Sharif may have even been elected on the basis of his promise to fix the Pakistan economy.  It’s not doing well at all so he has to come good or face major discontent from his people. They want jobs.  They want better social services and fewer power cuts.  Without improvement in the Pakistan economy 2013, increasing amounts of violent protests will erupt.

Now that the IMF is coming to Pakistan, it wants answers.  Having consented to boost the Pakistan economy 2013 with a loan of $6.7b over three years, Jeffrey Franks, its regional adviser, wants to see what the PM is doing in return.  This loan IS conditional upon quarterly reviews and results.

Sharif is trying. He has been attempting to deal with the country’s financial problems.  But critics are claiming that nothing will happen without a punishment on tax evaders that the government doesn’t seem to be taking care.

In addition, the IMF is getting impatient, given how Pakistani governments have behaved historically.  Since 1998, a staggering 11 (out of 12) IMF programs have basically been abandoned as the government has simply not implemented the necessary reforms.  Sharif is now promising the IMF that he will “privatize loss-making state industries, reform a faltering energy sector, expand Pakistan’s tiny tax base and cut government borrowing.”

Time will tell if he lives up to these promises, justifies the help from the IMF and enhances the Pakistan economy 2013.   Therefore, he will just have to hope that the IMF is patient.

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