Mon 11 November 2019:
Pakistan’s fiscal deficits are narrowing, the IMF said on Friday as it announced it would release the second tranche of its $6 billion financial assistance programme to the country.
The International Monetary Fund agreed the three-year rescue package for Pakistan in April.
“Completion of the review will enable disbursement of SDR 328 million (or around $450 million) and will help unlock significant funding from bilateral and multilateral partners,” Ramirez Rigo, head of an IMF mission to Islamabad, said in a statement after the mission completed its first review of its programme.
“The government policies have started to bear fruit, helping to reserve the buildup of vulnerabilities and restore economic stability. The external and fiscal deficits are narrowing, inflation is expected to decline and growth although slow, remains positive,” the IMF statement said.
The mission was in Islamabad from Oct. 28 to Nov. 8.
The IMF said Pakistan’s near-term economic outlook was broadly unchanged from the time of the programme approval in April, with gradually strengthening activity and average inflation expected to decelerate in the 2020 fiscal year. However, domestic and international risks remain, and structural economic challenges persist, it said.
“Positive for Pakistan! IMF Mission concludes successfully. IMF confirms that Pakistan met all First Quarter Performance Criteria by good margins and economy continuing to get better. Thank you PM and entire team!,” Dr Abdul Hafeez Shaikh, finance adviser to the prime minister said in a tweet on Friday night.
Pakistan has lifted interest rates over the past year to tame high inflation, which eased to 11.04% in October from 11.37% in September.
-REUTERS
Think your friends would be interested? Share this story!
