Panama Papers are an issue of transparency: IMF chief

Panama Papers and Bahama Leaks are a matter of honesty, transparency and accountability, IMF chief Christine Lagarde said here today, amidst demand for the resignation of Pakistan Prime Minister Nawaz Sharif on corruption charges.
On the final day of her maiden two-day visit to Pakistan, the IMF Managing Director in her concluding press conference alongside Finance Minister Ishaq Dar said accountability and transparency was the right course forward for the country.
"And that is the best way to go forward whether it is Panama or Bahama or whatsoever," she said in response to a question regarding alleged involvement of Pakistani leaders in Panama Papers scandal.

She said technological progress and access to information will make it impossible to run and hide, Dawn reported.
Lagarde also indicated that the perception of corruption was hurting Pakistan's prospects to grow.
"Pakistan ranks 117 out of 168 countries in perceived corruption," she said while referring to the Corruption Perceptions Index.

She said although direct social and economic losses are difficult to measure, even a perception of corruption deters private investment and impedes efforts aimed at promoting sustainable and inclusive growth.
"Increasing transparency, making people accountable and removing red tape can help" address the issue of perception of corruption, she was quoted as saying by the Express Tribune.

In his reply to a question about the Panama Papers, Pakistan's Finance Minister Ishaq Dar said there is no justification of the political agitation regarding the case.
(Reopens FNG28)
Lagarde also congratulated Pakistan on having
successfully completed its IMF-supported economic reform programme.
"I congratulate Pakistan on having successfully completed its IMF-supported economic reform programme. Improved macroeconomic stability as well as strengthened external buffers and public finances will provide a solid foundation for the economy.
"Many tax exemptions and concessions have been removed, and higher tax revenue has allowed for greater public investment and social spending. About 1.5 million more poor households are benefiting from targeted social assistance than three years ago.

She also noted that power outages have gradually decreased and the financial performance of the power sector is strengthening. A country-wide strategy to improve the business climate is being implemented.
"Improved macroeconomic stability as well as strengthened external buffers and public finances will provide a solid foundation for the economy," she said.
She said it is Pakistan's "moment of opportunity" to address its remaining economic challenges and work towards creating more private sector jobs and higher living standards for all segments of society.
Lagarde said she has emphasised in her discussions with Pakistani leaders the need to continue strengthening resilience by building fiscal and external cushions to be adequately prepared for future economic shocks.