 "Pakistan to clock 4.5% growth in current fiscal: IMF")
The International Monetary Fund (IMF) has forecasted a growth rate of 4.5% for Pakistan in the current fiscal, observing that its economic activity "remains robust".
"Economic activity remains robust," IMF's mission chief to Pakistan Harald Finger said yesterday after a delegation of the world body led by him met with Pakistani officials in Dubai on the 10th review of Pakistan's economic program supported by a three-year Extended Fund Facility (EFF) arrangement.
Although a weak cotton harvest, declining exports, and a more challenging external environment are weighing on growth prospects, real GDP growth is expected to reach 4.5% 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, Finger said.
Gross international reserves of Pakistan reached $15.9 billion in December 2015, up from $15.2 billion at end-September 2015 and covering close to four months of prospective imports.
Finger said after constructive discussions, the mission and the Pakistani authorities have reached staff-level agreement on the completion of the tenth review under the EFF arrangement.
The agreement is subject to approval by the IMF Management and the Executive Board. Upon completion of this review, $497 million will be made available to Pakistan.
Pakistan's Finance Minister Ishaq Dar, State Bank of Pakistan (SBP) Governor Ashraf Wathra, and other senior officials attended the meeting with IMF in Dubai from January 26 to February 4.
