Widening fiscal deficit and slow growth; IMF sees Pak economy vulnerable to internal and external shocks
Monday, February 6th, 2012 11:53:56 by Fayyaz Yaseen
Widening fiscal deficit and slow growth; IMF sees Pak economy vulnerable to internal and external shocks
Washington: (Monday, February 06, 2012) expressing concerns over Pakistan’s slow economic growth and the increasing fiscal deficit, the International Monetary Fund has said that the country’s economy was at a high risk to remain
vulnerable to internal and external shocks.
Providing with the projected stats, the IMF said that Pakistan’s economy was expected to perform better this year, and in comparison to last year’s 2.4, it was likely to grow at 3.4 per cent in fiscal year 2011-2012.
Nevertheless, the expected growth was mere half to what was required by the country to absorb two million new workers in the market every year. The international financial institute also marked that unemployment and underemployment
was also far higher than the official figures of 6.6 per cent.
According to the bank, a loose monetary policy on part of State Bank of Pakistan to help boost economy of the country was proving to be counterproductive as it was contributing towards keeping the inflation in double figure.
In its annual report, while remarking about Pakistan, the IMF stated that the Pakistan economy was “highly vulnerable with few buffers to absorb shocks.”
Urging the government to increase its revenues and to tighten its accommodative monetary policy, the IMF also urged that the government must provide more independence to the central bank of Pakistan. It stated, “Central Bank financing
of the budget needs to be curtailed, and greater operational independence of the central Bank needs to be secured.”
Short URL: https://www.newspakistan.pk/?p=11912
Posted by Fayyaz Yaseen
on Feb 6 2012. Filed under Business.
You can follow any responses to this entry through the RSS 2.0.
You can leave a response or trackback to this entry
