Ahsan Iqbal Asks PM for Role in IMF Talks

The Ministry of Planning has formally requested Prime Minister Shehbaz Sharif to include the Planning Ministry in the core team for upcoming talks with the International Monetary Fund, alongside the Finance Division. Planning Minister Ahsan Iqbal submitted the request, arguing that discussions with the IMF encompass critical areas such as economic growth, inflation, and poverty, all of which fall under the ministry's jurisdiction.

The request is timely as the IMF review mission is set to engage with Pakistani authorities in Islamabad this week. The Pakistani delegation, led by the Finance Minister, will engage in high-level discussions, while Finance Secretary Imdad Ullah Bosal will spearhead technical level deliberations.

Iqbal's request aims to restore the Planning Ministry's historical role in economic policymaking, which it played with vigor during the 1960s, 1970s, and 1980s. In contrast, the Finance Division's influence gained prominence from the 1990s onwards. Iqbal anticipates inflation rates dropping back to single digits once peace is established in the Gulf region and the recent surge in prices begins to stabilize in the coming weeks and months.

However, the minister expressed dissatisfaction with the current 6 percent growth rate touted by the PTI government, attributing it to increased consumption and imports, which he believes have led to a decline in foreign exchange reserves. Iqbal advocates for a growth model driven by exports and private sector investments, as opposed to the government's current approach.

The Monthly Development Outlook, published by the Planning Ministry, underscores future development efforts centered around enhancing public investment, expediting priority projects, and bolstering implementation capacity. It also highlights private investment, exports, productivity, technology, human capital, and climate resilience as key priorities for fostering broader and sustainable economic growth.