Article Type

Article

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In August 2016, Pakistan will complete the final review of its extended arrangements with the IMF. In the absence of major hiccups, the country would be able to heave a sigh of relief. The crisis risks that loomed large in 2013 would have eased and stabilisation reduced macroeconomic imbalances. Fiscal deficit would be down to 3.5pc to 4pc. Inflation would be around 5pc to 6pc. The current account deficit would be contained to less than 1pc. Forex reserves would cover three months imports. The power to issue SROs has been transferred from the Federal Board of Revenue to parliament. These are all positive changes, some of which have taken place due to exogenous factors such as declining oil prices, exceptional flows of external capital, greater than expected worker remittances. Where the Fund finds lack of progress is in “the long‐standing barriers to sustainable, strong and inclusive growth” as these relate to intractable structural policy and governance reforms. It has identified these as key risks for the future.

Publication Source

Dawn

Publication Date

7-13-2015

Pages

1-3

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