Pakistan Development Update, June 2019 : Weathering the Storm - Restoring Macroeconomic Stability
Pakistan is facing yet another balance of payment crisis. Authorities have taken some corrective measures and negotiated a 39-month stabilization program with the International Monetary Fund (IMF). Nonetheless, inflationary pressures increased duri...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/632901566311713146/Weathering-the-Storm-Restoring-Macroeconomic-Stability http://hdl.handle.net/10986/32301 |
| Summary: | Pakistan is facing yet another balance
of payment crisis. Authorities have taken some corrective
measures and negotiated a 39-month stabilization program
with the International Monetary Fund (IMF). Nonetheless,
inflationary pressures increased during FY19. Current
account deficit narrowed as imports declined, however,
exports performance remained weak. Despite the adjustment
measures fiscal pressure persist due to high debt servicing
and defense expenditures. Debt level is in breach of Fiscal
Responsibility and Debt Limitation Act (FRDLA). The growth
is projected to decelerate further in FY20, as the
government tightens fiscal and monetary policy. This report
highlights the importance of tackling the structural
challenges which are hampering growth and investments. The
report emphasizes that the failure to address these
structural challenges, in parallel to addressing the
macroeconomic imbalances, just means that the next crisis is
another 4 to 5 years away. |
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