The International Monetary Fund (IMF) has said Pakistan’s macroeconomic conditions are improving as executive directors concluded a review of the country’s economic performance.
On the occasion of the Executive Board’s approval of the $ 555.9 million tranche for Pakistan, David Lipton, First Deputy Managing Director and Acting Chair, noted that “fiscal consolidation remains broadly on track.” “Macroeconomic conditions are improving, but downside risks remain. The government has taken measures to address short-term macroeconomic vulnerabilities and advance structural reforms, including the energy sector reform, but continued efforts to safeguard the fragile economic recovery are needed,” he said according to a Fund statement.
He also acknowledged that Islamabad’s efforts to boost foreign reserves are bearing fruit and should continue, including through spot purchases, greater exchange rate flexibility, and a prudent monetary policy.
In other areas, Lipton noted the banking sector remains financially stable and profitable and also welcomed continued energy policy reforms.