The International Monetary Fund has predicted five per cent growth for Pakistan in the medium-term and easing of inflation to below 8 per cent in fiscal 2014-15.
In a detailed report on the country’s economic performance, released yesterday evening, the IMF warns that political and security conditions in the country continued to pose a serious challenge to the national economy.
The report predicts that in the medium-term, the growth is expected to rise to around 5pc, due mainly to easing fiscal adjustment and improvements in structural bottlenecks in the energy sector, public enterprises, and the investment climate.
Average inflation is expected to ease to below 8pc in fiscal year 2014-15 and fall further thereafter, as inflation expectations will be anchored by tight monetary policy and sustainable fiscal policy.
Foreign exchange reserves are expected to exceed $14 billion by end-June 2015 — a coverage ratio of over three months of imports.
