Summary Economy was expected to grow by 5.6 percent in 2017 but has fallen short of the 6% GDP growth: IMF
LAHORE (Dunya News) – The International Monetary Fund (IMF) has told that it has nothing to do with the recent depreciation of Pakistani currency in the light of recent developments when dollar at interbank and open market reached to all-time high level.
IMF expected that the Pakistan’s economy to grow by 5.6 percent in the current fiscal year. It was added that Pakistan will not achieve the GDP target of 6% in 2017.
IMF welcomed the State bank’s move allowing currency exchange rate to adjust to the market conditions which eventually halted slide in rupee in the interbank market.
IMF director Harald Finger said during today’s briefing that the Pakistani economy was expected to grow by 5.6 percent in 2017, but has fallen short of the 6% GDP growth target. He recommended a tight monetary stance to keep fiscal discipline.
He told the government to take steps in order to reverse the increasing external imbalances, including strong reform effort to maintain external stability, ensuring debt sustainability, broadening tax base, and strengthening the monetary policy framework and more.
"Strong reform effort is needed to maintain external stability and ensure debt sustainability. The government should pursue broadening of the tax base and strengthening of the monetary policy framework.”
The IMF delegation confirmed that Pakistan has not requested for any loan in 2018. They told that the political uncertainty in the biggest challenge for ruling government, while the second biggest challenge is to maintain the foreign exchange (FOREX) reserves.
It was further conveyed that containing fiscal deficit and sustaining the economic reforms nearing to election are the third and fourth biggest challenges for Pakistan, respectively.
