Pakistan: 2021 Article IV Consultation, Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, and Requests for Waivers of Applicability and Nonobservance of Performance Criteria and Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for Pakistan

IMF Staff Country Reports, February 4, 2022

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Pakistan: 2021 Article IV Consultation, Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, and Requests for Waivers of Applicability and Nonobservance of Performance Criteria and Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for Pakistan

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Bibliographic details

• Published: February 4, 2022
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400200212.002

Executive summary and near-term macro developments

• Economic activity has rebounded strongly on the back of waning COVID-19 infections and expansionary fiscal and monetary policies.
• Strong import growth—fueled by the macroeconomic policy mix, higher international commodity prices, and credit growth—has led to a marked deterioration of the external position.
• The current account deficit has widened.
• The rupee depreciated markedly.
• Inflation remains persistently high.

Key thematic findings

• Economic sectors: Recovery observed as COVID-19 infections wane and policy support remains expansionary.
• External sector: Strong import growth and higher commodity prices have worsened the external position and widened the current account deficit.
• Monetary policy and inflation: Expansionary monetary policy contributed to demand pressures; inflation remains persistently high.
• Public finances and SOEs: Fiscal expansion contributed to the macroeconomic policy mix affecting external balances; public enterprises and SOE debt are listed subject themes.
• Environment and emissions: Greenhouse gas emissions and environmental considerations appear among the subject areas covered.

Subjects and keywords (as listed)

• Subjects: Economic sectors, Environment, Exports, Greenhouse gas emissions, International organization, International trade, Monetary policy, Public debt, Public enterprises, Revenue administration
• Keywords: Central Asia, Covid pandemic, Exports, Global, Greenhouse gas emissions, H. SOE sector reform, Middle East, North Africa, Policy recommendation, Public enterprises, SOE debt, test positivity rate

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