## Pakistan: Staff Report for the 2006 Article IV Consultation

_IMF Staff Country Reports, December 7, 2006_

## Source details

**Canonical URL:** [Pakistan: Staff Report for the 2006 Article IV Consultation](https://www.imf.org/en/publications/cr/issues/2016/12/31/pakistan-staff-report-for-the-2006-article-iv-consultation-20156)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/pakistan-staff-report-for-the-2006-article-iv-consultation-20156/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/pakistan-staff-report-for-the-2006-article-iv-consultation-20156/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/pakistan-staff-report-for-the-2006-article-iv-consultation-20156/bundle-manifest.json)

## Bibliographic details
- Published: December 7, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451830699.002

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### Executive summary
- "The demand pressures associated with the large terms-of-trade gains are reflected in a fast real appreciation of the ruble, although more of this has come through nominal appreciation during the last year."
- "The risks to the outlook are evenly balanced and depend mostly on oil price developments."
- "Current policies raise medium-term risks."
- "IMF staff welcomed the greater focus on inflation control, but cautioned that additional exchange rate flexibility would be needed to meet the end-2006 target, especially at a time when demand pressures are exacerbated by fiscal relaxation."

### Major findings and outlook risks
- Fast real appreciation of the ruble driven by large terms-of-trade gains.
- Recent appreciation has been largely nominal during the last year.
- Outlook risks are described as evenly balanced.
- Oil price developments are identified as the principal determinant of the outlook risks.
- Current policy stance is assessed as raising medium-term risks.

### Policy messages and recommendations
- Positive note: greater focus on inflation control welcomed by IMF staff.
- Cautionary note: additional exchange rate flexibility would be needed to meet the end-2006 target.
- Context for caution: demand pressures are exacerbated by fiscal relaxation.

### Thematic subjects and keywords
- Subjects: Balance of payments; Current account; Current account deficits; Expenditure; External debt; Public debt.
- Keywords: authorities' objective; CR; Current account; current account deficit; Current account deficits; deficit; deficit-to-GDP ratio; Global; government; government debt-to-GDP ratio; ISCR; rate; reform agenda; U.S. dollar.

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## Content in this bundle

- **Pakistan: 2006 Article IV Consultation; Staff Report; IMF Country Report 06/426; November 1, 2006**
  - [Pakistan: 2006 Article IV Consultation; Staff Report; IMF Country Report 06/426; November 1, 2006 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06426.pdf.md){rel="alternate" type="text/markdown"}
  - [Pakistan: 2006 Article IV Consultation; Staff Report; IMF Country Report 06/426; November 1, 2006 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06426.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/pakistan-staff-report-for-the-2006-article-iv-consultation-20156_