Economy stable, but challenges persist: IMF

WASHINGTON: The IMF Executive Board’s decision to disburse around $700 million to Pakistan reflects a positive review of the country’s economic reform programme. While economic activity has stabilised, challenges persist, contingent on the effective implementation of sound policies.

Macroeconomic conditions have shown improvement, with a projected two per cent growth in FY24. The fiscal position strengthened in 1QFY24, achieving a primary surplus of 0.4pc of GDP, driven by strong revenues. Inflation, although elevated, is expected to decline with appropriately tight monetary policy to 18.5pc by end-June 2024.

Gross reserves of the State Bank of Pakistan (SBP) increased to $8.2 billion in December 2023, and the exchange rate remained stable.

IMF’s Deputy Managing Director Antoinette Sayeh emphasises the need for “continued strong ownership to maintain momentum in stabilising Pakistan’s economy.”

Leave a Reply

Your email address will not be published. Required fields are marked *