Pak economy to grow at 4.5 pc despite declining exports: IMF

Pakistan's economy will grow at 4.5 per cent in the current fiscal despite a decline in exports and challenging external environment weighing on the country's growth prospects, the IMF has said.
The International Monetary Fund said a weak cotton harvest, declining exports and a more challenging external environment are weighing on the growth prospects of Pakistan.
Despite these challenges, the real GDP growth is expected to reach 4.5 per cent in FY 2015/16, helped by lower oil prices, planned improvements in the energy supply, investment related to the China Pakistan Economic Corridor (CPEC), buoyant construction activity, and acceleration of credit growth, IMF's mission chief to Pakistan Harald Finger said.

"Economic activity remains robust," Finger said yesterday after a meeting with Pakistani officials in Dubai for the 10th review of Pakistan's economic programme supported by a three-year Extended Fund Facility (EFF) arrangement.
Finger said after constructive discussions, the mission and the Pakistani authorities have reached a staff-level agreement on the completion of the 10th review under the EFF arrangement.
The agreement is subject to approval by the IMF management and the executive board. Upon completion of this review, about USD 497 million will be made available to Pakistan.
Pakistan's gross international reserves reached USD 15.9 billion in December 2015, up from USD 15.2 billion at end-September the same year, and covering close to four months of prospective imports.

Pakistan's Finance Minister Ishaq Dar, State Bank of Pakistan (SBP) Governor Ashraf Wathra attended the meeting that concluded yesterday in Dubai.