IMF urges Pakistan to cut down budget gap
WASHINGTON - Agence France-Presse
A man driver travels on his cart loaded with chickens in Rawalpindi. AFP PhotoThe International Monetary Fund on Nov. 29 urged Pakistan to reduce its large budget deficit to bolster the struggling economy’s resiliency.
Pakistan’s growth remains too weak, underlying inflation is high and the trade balance is heading in the wrong direction, the IMF said in a statement.
“The situation is compounded by an uncertain global environment and a difficult domestic situation, as well as adverse effects of natural disasters,” said the IMF, citing executive board discussions on Pakistan.
For the third year in a row, Pakistan has been hit with severe flooding that has impacted millions of people and damaged economic growth.
Weak financial inflows and debt repayments have led to a decline in the central bank’s foreign exchange reserves to under $10 billion in October, below adequate levels, the IMF noted.