IMF endorsement: GDP growth for Pakistan

The International Monetary Fund (IMF) endorsed policies of the government policies on Monday and appraised Pakistan’s GDP growth for this fiscal year to 4.3 per cent from 4.1pc.  Through this endorsement the government will be able to deal with the pressures caused by the ongoing protest marches and rallies in Islamabad. It is hope that a strong economy might help weaken PTI’s campaign for the government’s resignation.
Fund’s mission chief in Pakistan Jeffrey Franks, visited Dubai with his IMF team from Aug 6 to 18 to discuss about the country’s IMF-supported programme under the Extended Fund Facility. Finance Minister Ishaq Dar was also present there as the team refused to come to Islamabad due to PTI and PAT’s protest marches. Another tranche of $550 million early next month is hoping to be released from the $6.67 billion bailout package for Pakistan.
“The IMF is encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving investment and growth,” according to a statement given after the meeting.
“Economic indicators are generally improving, with growth continuing to gain momentum, inflation on a downward trajectory, and credit to the private sector rebounding sharply.”
As stated by the IMF, Pakistan’s “GDP growth is now expected to rise by 4.3pc in fiscal year 2014-15 (to June 30), compared to a provisional estimate of 4.1pc in FY2013-14.” Mr Franks remarked that they held a fruitful and positive negotiating session and stated that the government’s reform programme was going on smoothly through end-June.