ISLAMABAD: International Monetary Fund’s (IMF) Deputy Director in the Research Department Gian Maria Milesi-Ferrtti has affirmed that Pakistan has remained steadfast on fiscal adjustment and has picked up economic stability as a result.
Speaking at a news conference at the launch of the World Economic Outlook 2019, Mr Ferrtti responded to a question put to Gita Gopinath, the IMF Economic Counsellor and Director of Research Department, as to how the renewed tension on Kashmir could impact growth prospects in India and Pakistan.
As Ms Gita avoided the question, Mr Gian asserted that both countries needed to defuse tensions and focus on economic activities.
He said there were good signals on the confidence front that the exchange rate was more realistically showing the economic conditions. He added that investors were gaining confidence.
The renowned economist further outlined that Pakistan’s tax revenue has been increasing despite of several challenges to the state’s economy.
He expected that soon economic growth of the country would gain strength, which is essential for improving the general public’s state.
Amid simmering regional tensions between countries, he appeared optimistic that Pakistan would cope with some of the challenges including renewed regional tensions and oil prices because Pakistan was heavily reliant on oil imports.
Talking positively about Pakistan’s progress on the IMF-supported economic programme, Mr Gian said Islamabad had an ambitious programme with the Fund which had exceeded “our expectations”.
He observed that the global financial flows demand was picking up for Pakistan that would help in reviving growth, adding that macroeconomic imbalances remained and oil importing countries were sensitive to global oil prices.
