The International Monetary Fund and Pakistani authorities are considering reviewing the country’s GDP growth target for this fiscal year, as destructive floods and external pressures weigh on the economy.
A part of the IMF’s ongoing review mission in Islamabad, talks come to light when the government’s 4.2 percent growth target looks beyond rapidly. The IMF itself offers Pakistan’s GDP to increase only 3.6 % in the next financial year, below the official prediction.
The talks are focused on the economic impact of the recent floods, which has damaged infrastructure, agriculture and livestock, as well as damaging wider policy measures and financing requirements before the next train, under extensive policy measures and fund facilities.
Inflation is expected to accelerate, with an estimated 7-8 % of this year. Foreign exchange reserves reach about $ 14.5 billion, while the current account deficit is estimated at $ 1.5 billion.
Exports predict $ 33 billion, which is about $ 60 billion, resulting in a trade deficit of about $ 27 billion at the end of the year. Remittances are expected to reach $ 36 billion.
Ready to continue negotiations in the coming days, with both sides to discuss structural reforms, tax measurements, and external financial. Government officials have termed the talks “constructive”, while the IMF has stressed that effective implementation of unanimous policies is key to providing the future.