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Pakistan Maintains Macroeconomic Stability

Pakistan Maintains Macroeconomic StabilityPakistan Maintains Macroeconomic Stability

The International Monetary Fund delegation appreciated Pakistan’s efforts in maintaining macroeconomic stability and achieving “impressive” economic growth despite multiple challenges.

A statement by the ministry of finance on Saturday said IMF’s post program monitoring mission held technical discussions over the last week with  Pakistan’s financial team led by Finance Secretary Shahid Mahmood, APP reported.

The IMF team, led by Harald Finger, discussed a host of areas, including macroeconomic situation, developments in energy, fiscal, financial, monetary and social sectors, the statement added.

Pakistan’s secretary of finance shared with the IMF delegation an overview of the economy. He said it is on track and key economic indicators are moving in the positive direction. Significant growth has been achieved in revenue generation so far in the current fiscal year.

Foreign direct investment climbed 74.4% to $940 million in the first four months of the current fiscal year. Tax revenue collection increased 20% in the first quarter (July-September) of 2017/18, while fiscal deficit, during the quarter, was lower than the same period a year earlier, signaling that fiscal consolidation is on track this year.

Mahmood said Pakistan achieved fiscal consolidation without compromising expenditures on development and social protection. The government set its eyes on achieving 6% GDP growth “which is inclusive, pro-poor and sustainable”.

He also apprised the IMF delegation of the recent launch of sukuk and eurobond. The country raised US dollar denominated sukuk and eurobond worth $2.5 billion in New York against the total offered amounts from investors of $8 billion. It raised $1 billion through five-year sukuk at rate of 5.625% and $1.5 billion with 10-year eurobond maturity at rate of 6.875%.

On Friday the mission met State Bank of Pakistan Governor Tariq Bajwa, the statement added. The mission also held meetings with the ministries of commerce and railways, Pakistan Bureau of Statistics, Oil and Gas Regulatory Authority and Securities and Exchange Commission of Pakistan.

It met senior officials in other ministries including energy, planning development and reforms, State Bank of Pakistan, the federal board of revenue, and national electric power regulatory authority and held technical discussions on key areas.

IMF’s last mission level visit to Pakistan took place in late 2013. The current visit was taking place after a gap of more than three years, reflecting improved security conditions as well as the economic performance of the country and growing trust of the international community.

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