Summary Pakistan has showed progress under the IMF program.
KARACHI (Web Desk) - According to Moody‘s Investors Service, Pakistan has progressed well during the last three years under the International Monetary Fund program which helped the fiscal deficit curtail by almost half from 8 percent attained during the fiscal year ended June 30, 2013.
Moody‘s said the structural reforms planned by the present government has started paying dividends.
"Under the IMF program, there has been sustained progress on key goals including fiscal deficit reduction, resolving constraints in the energy sector, and privatization of several state-owned enterprises", Moody‘s stated in an in email to Dunya News.
The coming months will provide important indications of whether reform momentum will continue after the program expires.
"A sustained pace of reforms, in line with that seen over the past three years, would signal continued commitment to fiscal discipline and structural change even in the absence of a binding program", the rating agency said.
Moreover, the China Pakistan Economic Corridor should, over time, bolster growth through higher investment in transportation and power generation infrastructure. Overall, a combination of further economic reforms and the CPEC point to real GDP growth at or around 5.0 percent per year.
According to an analyst Pakistan’s future hinge around development on CPEC as China has assured investment of $46 billion in the country where projects related to transport and energy have been the focal point. Around 10000 mega watt would be added to this system in next two years as network of power plants have been designed across the country. Moreover, four new LNG plants would be constructed which would help ease energy supplies.
Growth of five percent and above in coming years would attract foreign investment and would also help generate additional revenue collection which would help government to contain fiscal deficit to around four percent of the GDP.
