ISLAMABAD – The International Monetary Fund on Tuesday released a programme note on Pakistan, saying the real GDP growth was unlikely to exceed 2.8 percent during the current fiscal year due to adverse security developments which continue to hurt domestic and foreign investor’s confidence, while electricity shortages continue to prevent the economy from achieving its potential. The IMF programme note said the fiscal policy had been affected by low economic activity and a difficult security environment.
Delays in tax and expenditure reform and the impact of the floods were expected to keep the fiscal deficit high in current fiscal year. Pakistan’s real GDP growth during the current fiscal year would remain at 2.8 percent of GDP as compared to 4.8 percent in the last fiscal. Inflation was estimated at 15.5 percent as compared to last fiscal level of 11.7 percent.
Finance Minister Dr Abdul Hafeez Shaikh along with the finance team is on a week-long visit to Washington to attend the spring meetings of the IMF and World Bank. Pakistan is likely to seek a new bailout package after scraping the existing $11.3 billion Standby Arrangement programme.
