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IMF welcomes Pakistan’s commitment to lower fiscal deficit to 4.3% in 2015-16

Washington (APP) The International Monetary Fund (IMF) has welcomed Pakistan’s commitment to lower the fiscal deficit to 4.3 percent in the year ending June 30.

The country’s growth is expected to reach 4.5 percent this year, while remaining well-anchored by prudent monetary and fiscal policies.

In a detailed statement on the 10th review of Pakistan’s economic performance which IMF approved last month, the IMF said that economic activity continues to strengthen gradually.

After approving the 10th review, the IMF has already released $502 million tranche of a $6.6 billion loan secured in 2013.

“While a very weak cotton harvest and the continued decline in exports are weighing on economic activity, real GDP growth is expected to reach about 4.5 percent in FY 2015/16, supported by large-scale manufacturing, investment related to the China Pakistan Economic Corridor (CPEC), buoyant construction activity, a recovery in private sector credit growth, and gradual improvements in the supply of gas and electricity.”