Esther Pérez Ruiz, the resident representative of the International Monetary Fund (IMF) for Pakistan, backed public sector reforms on Thursday.
These reforms would allow the public sector to play a more effective role in producing the resources required to enhance public services, develop human capital, and modernize infrastructure in a way that is more equitable and sustainable.
In an interview with academics, industry professionals, and members of civil society on Thursday, Ruiz stated that since the July 2023 launch of the Stand-By Arrangement, public trust in policymaking has grown, as evidenced by the decline in inflation to its lowest point in three years, the more than doubling of international reserves, and the improving state of the economy.
Despite the difficult external climate and the devastating effects of the 2022 floods, Pakistan has managed to restore financial and economic stability throughout the last fiscal year, she stated.
After the 2024 Extended Fund Facility (EFF) was approved here in the SDPI Conference Hall, the Sustainable Development Policy Institute (SDPI) organized the IMF Resident Representative for Pakistan, Esther Pérez Ruiz, for a discussion on “Raising Pakistani Living Standards and Economic Resilience.”
According to Ms. Esther Pérez Ruiz, in order for Pakistan to fulfill its primary goal of improving the lives of a significant portion of the country’s population—a goal that the IMF gleefully endorses—it must change its development model away from government intervention in economic decisions, which involves protectionism, promotions, subsidies, and tax breaks primarily for privileged groups.
Ms. Ruiz emphasized that in order to support the growth of new, more fruitful industries and exports, the nation requires policies that declutter the economy, encourage competition, lower trade barriers, and simplify regulatory burdens.
