Pakistan Economic Outlook
May 21, 2019
The economy was thrown a lifeline on 12 May when the government reached an agreement with the IMF to unlock a three-year, USD 6 billion loan package which will be vital to shoring up the country’s critically-low foreign reserves. The agreement comes with strict conditionality, and led the rupee to hit an all-time low against the dollar. The Fund’s prescriptions center on improving the state’s tax collection capacity, recouping costs in the energy sector and in state-owned enterprises—all in a bid to improve the fiscal position—and eventually transitioning the foreign exchange regime to a more free-floating system. As a result of full implementation of the IMF package, there should be a narrowing of the current account deficit, which remains gaping despite a marked improvement in July 2018-March 2019.Pakistan Economic Growth
The economy is seen remaining in the doldrums in FY 2020 as economic reforms agreed to as part of the IMF deal will likely inflict short-term pain. Notably, efforts to rein in the fiscal and current account deficits and the high level of public debt will likely weigh on the growth momentum in the short-term, while strained relations with India represent another downside risk. Our panelists see growth of 3.9% in FY 2020, which is down 0.1 percentage points from last month’s estimate, and 4.7% in FY 2021.Pakistan Economy Data
Sample Report
Get a sample report showing our regional, country and commodities data and analysis.
Pakistan Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 14.14 | 0.0 % | Jun 13 |
| Exchange Rate | 153.1 | -0.05 % | Jun 13 |
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
© Copyright: 2019 | Pakistan Economy | Privacy Policy | Cookies Policy | Terms & Conditions | Sitemap | RSS feed ...
