The International Monetary Fund (IMF) endorsed economic policies of the government on Monday and revised Pakistan’s GDP growth for this fiscal year to 4.3 per cent. up from 4.1pc.
The endorsement may help the government deal with the pressures generated by more than a week of relentless protest marches and rallies in Islamabad, that are now spreading all over the country. Indications of a strong economy may further weaken PTI’s campaign for forcing the government to resign by causing a financial collapse.
An IMF team, led by the Fund’s mission chief in Pakistan Jeffrey Franks, visited Dubai from Aug 6 to 18 to conduct discussions on the fourth review of the country’s IMF-supported programme under the Extended Fund Facility.
The team had earlier refused to visit Islamabad due to PTI and PAT’s protest marches, compelling Finance Minister Ishaq Dar to visit Dubai for the talks.
“The IMF is encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving investment and growth,” said a statement issued in Washington after the fourth review.
“Economic indicators are generally improving, with growth continuing to gain momentum, inflation on a downward trajectory, and credit to the private sector rebounding sharply.” Continued the statement.
The Fund is expected to release another tranche of $550 million early next month from the $6.67 billion bailout package for Pakistan.
