IMF Urges Reform in Pakistan’s Agriculture and Textile Sectors

The IMF recommends that Pakistan end preferential treatment for agriculture and textile sectors, which hinder economic growth. The report highlights inefficiencies, subsidies, and fiscal incentives that stifle competitiveness. The IMF calls for simplified trade policies to boost high-value exports and improve Pakistan’s economic complexity.

The International Monetary Fund (IMF) has issued a call to action for Pakistan, urging the country to swiftly end preferential treatment and tax exemptions in the agriculture and textile sectors. These sectors have impeded the nation's growth, according to a report in The Dawn newspaper on Monday.

In its recent staff report, the IMF criticized these sectors for not contributing adequately to national revenue while consuming considerable public funds. As a part of the USD 7 billion Extended Fund Facility, the IMF advised Pakistan to break from its entrenched economic practices that have perpetuated cyclical economic instability.

Released on October 10, the IMF report highlighted that Pakistan has lagged behind similar nations, compromising living standards. With a strong focus on agriculture and textiles, the country's export diversity is limited, affecting its economic progression. The IMF also emphasized the necessity for policy reforms to enhance competitiveness and integrate into global trade networks.

(With inputs from agencies.)