Pakistan Picking up stability, IMF

The IMF-supported economic programme, Islamabad had an ambitious programme with the Fund which had exceeded “our expectations”. Gian Maria Milesi

Washington: IMF’s economist Gian Maria Milesi-Ferrtti said Pakistani authorities remained steadfast on fiscal adjustment and the country was now picking up stability as a result. Speaking at a news conference at the launch of the World Economic Outlook 2019.

He was responding to a question as to how the renewed tension on Kashmir could impact growth prospects in India and Pakistan, put to Gita Gopinath, the IMF Economic Counsellor and Director of Research Department.

While Ms Gita parried the question, Mr Gian said the countries needed to contain tensions and focus on economic activities. He said there were good signs on the confidence front that the exchange rate was more realistically showing the economic conditions.

He expressed the hope that the authorities would remain steadfast to some of the challenges like renewed regional tensions and oil prices because Pakistan was heavily reliant on oil imports.

He said that while India would have strong growth rate of 6.5pc next year, it was nevertheless lower than recent years which could not be maintained and the geopolitical tensions could take a toll on growth prospects.

Talking positively about Pakistan’s progress on the IMF-supported economic programme, Mr Gian said Islamabad had an ambitious programme with the Fund which had exceeded “our expectations”.

This was in contrast to Pakistan’s central bank approach that has been on tightening mode since the country entered the IMF programme last year.