According to the State Bank of Pakistan’s senior officials, the current situation of the Pakistani economy has improved drastically in the current months. He nullified the rumor of Pakistan at the brink of default, stating that the economy has significantly improved in recent times.
Sources claim that the officials of SBP believe, Pakistan will easily secure the program from IMF (International Monetary Fund). Hence, for this purpose, there is no prerequisite regarding meeting financial prerequisites externally.
The IMF reportedly promised the Pakistani government that the $1.17 billion tranche would be swiftly approved by the Executive Board after 15 August 2022.
For the current fiscal year, the central bank projects that inflation would range between 18 and 20 percent. The central bank claims that given the country’s external debt is manageable, there is no need for concern.
According to sources, the IMF is aware that all of Pakistan’s major parties support the Fund’s program despite the country’s current political unrest.
According to further sources, friendly nations have pledged their support for Pakistan after the IMF scheme is approved, and the nation would get considerable financial aid from the friendly nations.
The GDP growth rate over the previous two years has been between 5% and 6%. However, because of an increase in imports and a growing deficit, the expansion was not sustainable. For the current fiscal year, the central bank anticipates that GDP will expand by about 3 to 4%.
Sri Lanka’s deficit is three to four times more than Pakistan’s, according to central bank officials. Furthermore, it took Sri Lanka longer than two years to decide on its exchange rate and policy rate, proving that Pakistan’s circumstances should not be contrasted with that of Sri Lanka.
