Pakistan’s IMF Cycle: The Structural Reforms Needed to Break It

Description

Dr Rana discussed why Pakistan continues to return to the IMF and the structural reforms needed to build a more resilient economy.

His central argument is that the challenge is not simply the trade deficit, but an economic model that consumes foreign exchange faster than it generates it.

Dr Rana also proposed a simple policy test: before introducing any major economic policy or public investment project, governments should ask three questions:

• Will it earn foreign exchange?
• Will it save foreign exchange?
• Or will it simply consume more foreign exchange?

Sustainable growth requires stronger exports, higher productivity and greater competitiveness.