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

_IMF Staff Country Reports, July 8, 2019_

## Source details

**Canonical URL:** [Pakistan: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Pakistan](https://www.imf.org/en/publications/cr/issues/2019/07/08/pakistan-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-release-47092)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/07/08/pakistan-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-release-47092/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/07/08/pakistan-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-release-47092/index.json)
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## Bibliographic details
- Published: July 8, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498324496.002

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### Economic assessment and current juncture
- Pakistan’s economy is at a critical juncture.
- Misaligned economic policies in recent years included:
  - large fiscal deficits
  - loose monetary policy
  - defense of an overvalued exchange rate
- These policies:
  - fueled consumption and short-term growth
  - steadily eroded macroeconomic buffers
  - increased external and public debt
  - depleted international reserves
- 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.

### Structural weaknesses
- Structural weaknesses remained largely unaddressed:
  - a chronically weak tax administration
  - a difficult business environment
  - inefficient and loss making SOEs
  - low labor productivity amid a large informal economy

### Fiscal and macro-financial implications
- Policy mix described above led to:
  - erosion of macroeconomic buffers
  - increased external and public debt
  - depleted international reserves
- Identified subject areas in the report include:
  - Budget planning and preparation
  - Expenditure
  - External debt
  - Public debt
  - Public financial management (PFM)
  - Revenue administration

### Keywords and focus areas from the publication
- 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

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- **1pakea2019001**
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_Source: https://www.imf.org/en/publications/cr/issues/2019/07/08/pakistan-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-release-47092_