ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are continuing discussions on the country’s economic review, with the Fund emphasizing the need to maintain a market-based exchange rate and keep monetary policy sufficiently tight to contain inflation.
During several meetings with the IMF mission, Pakistan’s economic team presented its latest economic estimates and projections. Officials briefed the mission on the country’s overall economic outlook, external sector position, inflation expectations and growth targets for the current fiscal year.
According to the briefing, Pakistan’s economic outlook remains stable, while the rupee is expected to remain relatively steady. Officials also expect inflation to ease gradually, with the current account deficit projected to remain below the government’s earlier target.
Pakistan has maintained its economic growth target of 4 percent for the current fiscal year. Officials also assessed that the ongoing conflict in the Middle East would not significantly alter the country’s overall growth outlook, although higher international oil prices and possible supply disruptions remain potential economic risks.
According to information available to Geo News, Pakistan expects exports to reach around $34 billion and remittances to rise to approximately $45.5 billion during the current fiscal year. Imports are estimated at between $69 billion and $70 billion, while the current account deficit is projected at around $2.5 billion to $3 billion.
The IMF has maintained its position that a tighter interest-rate policy is important for controlling inflation. Pakistani officials, however, have indicated that inflation is expected to decline gradually after December. They estimated that inflation could reach 7.5 percent if global oil prices remain around $80 per barrel, while prices near $100 per barrel could push inflation to about 8.2 percent.
The briefing also highlighted a 14.7 percent increase in remittances during the first two months of the fiscal year and expectations of continued stability in the external sector due to foreign exchange reserves.
