Pakistan: Staff Report for the 2011 Article IV Consultation and Proposal for Post-Program Monitoring.
IMF Staff Country Reports, February 7, 2012
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- Pakistan: Staff Report for the 2011 Article IV Consultation and Proposal for Post-Program Monitoring.
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Bibliographic details
- Published: February 7, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781463939090.002
Key findings and assessment
- Pakistan has implemented some reforms, including improvements in tax administration, removal of some tax exemptions, and the introduction of an interest rate corridor.
- The macroeconomic policies are overly expansionary and fundamental reforms to resolve the economy’s structural problems are not being tackled well.
- There is broad concurrence between the authorities and the mission on policy priorities, namely, tighter fiscal policy, a less accommodative monetary policy stance, and structural reforms.
- The government recognizes that the economy has performed well below its potential and requires an annual average rate of 7 percent to absorb youth labor growth.
Policy recommendations and priorities
- Tighten fiscal policy to reduce the current overly expansionary stance.
- Adopt a less accommodative monetary policy stance, consistent with the introduction of an interest rate corridor.
- Implement fundamental structural reforms to address underlying structural problems and raise potential growth toward the required annual average rate of 7 percent to absorb youth labor growth.
- Continue strengthening tax administration and removing inefficient tax exemptions to bolster revenue.
Analytical focus areas and subjects covered
- External debt
- Government debt management
- Inflation, Prices
- Public debt
- Public financial management (PFM)
- Revenue administration
Pakistan: Staff Report for the 2011 Article IV Consultation and Proposal for Post-Program Monitoring. February 7, 2012.