Pakistan's economy will increase by 4.5 percent in 2016: IMF
Overall growth in Pakistan, Afghanistan, North Africa and Middle East has weakened
LAHORE (Dunya News) – International Monetary Fund’s (IMF) World Economic Outlook suggests that Pakistan’s economy will increase by 4.5 percent in 2016 while 4.7 percent in 2017, Dunya News reported Wednesday.
The report states that overall growth in Pakistan, Afghanistan, North Africa and Middle East has weakened due to security risks, lessened oil prices and conflicts.
About the United States (US), world’s largest economy, the IMF stated that monetary policy normalization would proceed smoothly without much movement in long-term interest rates.
Earlier in March, the International organisation stated that Pakistan s economy was gradually gaining strength and its short-term vulnerabilities were receding.
This was stated by IMF Deputy Managing Director Mitsuhiro Furusawa in a statement issued after the executive board approved tranche of USD 502 million for Pakistan.
He urged Pakistan to continue implementing economic reforms to strengthen these gains.
Mitsuhiro Furusawa said further progress, including in the area of structural reforms, is needed to make the economy more resilient and competitive.
The international authority had stated that Pakistan could tackle tax evaders by strengthening anti-money laundering framework. The IMF further advised the government to speed up privatization of institutions that were running in losses.
A bailout package was granted to Pakistan under Extended Fund Facility (EFF) on September 4, 2013 to counter foreign debts.
As far as privatization of national institutions go, Parliament’s joint session approved PIA Conversion Bill 2016 on Monday.
Federal Finance Minister Ishaq Dar had told the session that amendments were made in the bill with consensus of the opposition parties. Pakistan People s Party (PPP) conditionally agreed to turning PIA to a limited company.
Dar had assured the opposition of meeting the demand pertaining to withdrawal of cases against PIA employees who had protested earlier this year.
