The International Monetary Fund (IMF) has approved the release of a tranche of $1.10 billion for Pakistan. The IMF stated that Pakistan should be managed under a policy framework that advances the reforms of government-owned enterprises. According to the IMF, Pakistan has completed the second review of its loan program and has made serious efforts to achieve the loan program targets.
The Fund also mentioned that the inflation ratio has started to decrease in Pakistan, and the economic growth rate has reached two percent after the loan program. Pakistan’s net foreign exchange reserves have increased from $4.5 billion to $8 billion. The unemployment rate in the country in the last fiscal year was 8.5 percent and is expected to be 8 percent this year. The revenues and grants were 11.4 percent of GDP during the last fiscal year, while this year, they are expected to be 12.5 percent.
The budget deficit last fiscal year was 7.8 percent of GDP, and this fiscal year’s budget deficit is likely to be 7.5 percent. Pakistan’s account deficit was 0.7 percent of GDP last year and is expected to jump to 0.8 percent this fiscal year. The IMF called for structural improvement, strong and inclusive growth, and measures to protect the poor through the Benazir Income Support Program and strengthen anti-corruption institutions.
