ISLAMABAD: The International Monetary Fund (IMF) has projected Pakistan’s economic expansion by 1.5 percent during the current fiscal year 2020/2021 while praising efforts of Pakistani authorities in taking measures amid coronavirus pandemic.
The economic during the last fiscal year recorded negative growth of 0.4 percent.
This was noticed by the IMF while reaching staff level agreement with Pakistani authorities.
The IMF issued a press release after reaching on a package of measures to complete second to fifth reviews of the authorities’ reform program supported by the IMF Extended Fund Facility (EFF).
The package strikes an appropriate balance between supporting the economy, ensuring debt sustainability, and advancing structural reform. Pending approval of the Executive Board, the reviews’ completion would release around $500 million.
The IMF noted that the COVID-19 shock temporarily disrupted Pakistan’s progress under the EFF-supported program. However, the authorities’ policies and allowing higher than expected COVID-related social spending, have been critical in supporting the economy and saving lives and households.
It further noted that the Pakistani authorities remain committed to ambitious policy actions and structural reforms to strengthen economic resilience, advance sustainable growth, and achieve the EFF’s medium-term objectives.
