IPR chief finds faults with de­scrip­tion of econ­omy

The Pak Banker - - COMPANIES/BOSS -

Min­istry of Fi­nance on Tues­day ob­served that a re­cent re­port of the In­sti­tute of Pol­icy Re­search (IPR), headed by Dr. Hafiz Pasha, has at­tempted to find faults with the de­scrip­tion of the econ­omy given by the In­ter­na­tional Mon­e­tary Fund (IMF) in the back­drop of re­cently con­cluded 9th Re­view.

A state­ment of the Min­istry of Fi­nance is­sued here said that the re­port has sug­gested that the IMF has ei­ther mis­rep­re­sented or used wrong in­for­ma­tion fed by the Govern­ment.

"Both as­sump­tions are false. Govern­ment pro­vides all rel­e­vant in­for­ma­tion as per the stan­dards with­out any fab­ri­ca­tion and the Fund is not un­aware of the trends cur­rently pre­vail­ing in the econ­omy", the Fi­nance Min­istry state­ment said.

The Min­istry fur­ther clar­i­fied that both the Fund and the Govern­ment have con­sid­er­ably more man-hours de­voted to eco­nomic man­age­ment in Pak­istan than the time Dr. Pasha and his team spends in crit­i­ciz­ing the eco­nomic per­for­mance of the govern­ment.

"From the out­set of the pro­gramme he (Dr. Pasha) has ex­pressed doubts on coun­try's per­for­mance.

He never hes­i­tated in ex­press­ing the view that the pro­gramme is a gift of IMF to Pak­istan re­quir­ing no dis­ci­pline or re­forms, the state­ment said.

The Fi­nance Min­istry's state­ment added that the re­port has taken ex­cep­tion to the IMFs as­sess­ment of the growth out­look and has pointed out that he was ig­nor­ing some re­cent neg­a­tive trends in­clud­ing the dam­age to cot­ton crop.

Be­fore re­spond­ing, let us point out that a dif­fer­ence of pro­fes­sional opin­ion re­gard­ing a fore­cast of fu­ture growth does not rep­re­sent a "false state­ment".

The state­ment fur­ther said that on the more sub­stan­tive ba­sis re­gard­ing the growth out­look, "we are again sur­prised at the claim in the IPR re­port that the dam­age to cot­ton crop would cause a one-per­cent­age point de­cline in the GDP es­ti­mate, for which he has cited no for­mal as­sess­ment.

In­deed, he has not made a cor­rect as­sess­ment of the im­pact. The share of cot­ton in GDP dur­ing 2014-15 was recorded at 1.45 per­cent".

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