IMF Staff Country Reports

Pakistan: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Pakistan

July 8, 2019

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Pakistan: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Pakistan, (USA: International Monetary Fund, 2019) accessed October 14, 2024

Summary

Pakistan’s economy is at a critical juncture. Misaligned economic policies, including large fiscal deficits, loose monetary policy, and defense of an overvalued exchange rate, fueled consumption and short-term growth in recent years, but steadily eroded macroeconomic buffers, increased external and public debt, and depleted international reserves. Structural weaknesses remained largely unaddressed, including a chronically weak tax administration, a difficult business environment, inefficient and loss making SOEs, and low labor productivity amid a large informal economy. Without urgent policy action, economic and financial stability could be at risk, and growth prospects will be insufficient to meet the needs of a rapidly growing population.

Subject: Budget planning and preparation, Expenditure, External debt, Public debt, Public financial management (PFM), Revenue administration

Keywords: Approval, Asia and Pacific, Budget planning and preparation, CR, Deficit monetization, Economic reform program, Fund letters of credit, Global, Government, ISCR, Letter of credit, Overvalued exchange rate, Pakistani authorities

Publication Details

  • Pages:

    96

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2019/212

  • Stock No:

    1PAKEA2019001

  • ISBN:

    9781498324496

  • ISSN:

    1934-7685