IMF warns Pakistan economy deteriorating

[Blackwater]

WASHINGTON: The International Monetary Fund (IMF) said Thursday that Pakistan's economic situation was worsening and faces a return to double-digit inflation as the government prints money to finance its deficit.

In a mission report, the IMF said Islamabad urgently needed to address deep problems in its energy sector, including costly subsidies and poor distribution, while boosting growth to meet a rapidly growing population.

"Pakistan faces a challenging economic outlook. GDP growth in 2012/13 is projected to be in the 3-3.5 per cent range, which needs to accelerate in order to absorb the growing labour force," the IMF said.

"Inflation has fallen recently but is expected to be back in double digits by the middle of next year if corrective measures are not taken to reverse monetary financing of the fiscal deficit." It said the country's external accounts are deteriorating, with incoming investment slowing and the central bank's reserves dropping.

"Decisive and far-sighted action is needed to address this challenging outlook," including raising taxes and cutting expenditures, especially subsidies, the IMF said.

It warned that allowing inflation to rise is hurting the population at large.

"Underlying inflation remains high and represents a regressive tax that disproportionately hurts the poor," the IMF said.


IMF warns Pakistan economy deteriorating | DAWN.COM

 

[Blackwater]

there is saying ,

there is no point playing been in front of buffalo

and

what monkey knows ,how ginger taste

 

[farhan_9909]

last year they said Pakistan growth would be 2.7%
while even ADB yesterday revised the growth rate to 3.7%

ksE 100 is Close to 16000 points compare last year October just 10000 points

1.6billion imf loan already paid while 250millions to be paid next month

imf should get it that we wont go to them for another bail out

our growth rate if is worst than would be 4.5% next which is still good considering India growth next year just 5.7%

 

[sukhish]

last year they said Pakistan growth would be 2.7%
while even ADB yesterday revised the growth rate to 3.7%

ksE 100 is Close to 16000 points compare last year October just 10000 points

1.6billion imf loan already paid while 250millions to be paid next month

imf should get it that we wont go to them for another bail out

our growth rate if is worst than would be 4.5% next which is still good considering India growth next year just 5.7%

still 6.4 billion to go for IMF, also GOP lied about last year growth

 

[farhan_9909]

still 6.4 billion to go for IMF, also GOP lied about last year growth

to be paid in 3 years ending 2015

i can say the same about India than

i was thinking of 4% growth.3.7% was disappointment.

 

[Bangalorean]

^^ Ever since shortcut Aziz lied about growth in the Musharraff era, people find it tough to believe statistics of Paki growth. Of course, being a Paki you will try to "say the same about India" but this is just the usual Paki propensity for equal-equal with a nation that is much superior to them.

 

[farhan_9909]

Economic Survey 2011-12: 3.7% growth rate achieved – The Express Tribune

 

[Phenom]

What happened to Pakistani economy, I would have expected it to grow by 4.5 - 5+, despite all the turmoil, It seems to have fallen of the cliff. Wasn't it growing at around 6% a few years ago?

 

[farhan_9909]

What happened to Pakistani economy, I would have expected it to grow by 4.5 - 5+, despite all the turmoil, It seems to have fallen of the cliff. Wasn't it growing at around 6% a few years ago?

growth planned for 2012 was 4.1% but achieved only 3.7%

growth planned for next year is 4.7%.and many things are on positive note now

decreased inflation
stock exchange on rise

so even if 4.5% than this is better for Pakistan
while under imran khan growth will be on fire

 

[blank_quest]

growth planned for 2012 was 4.1% but achieved only 3.7%

growth planned for next year is 4.7%.and many things are on positive note now

decreased inflation
stock exchange on rise

so even if 4.5% than this is better for Pakistan
while under imran khan growth will be on fire

do you have any fcuking clue! No damn good growth will happen unless states have equal growth opportunity. Baluchistan, Waziristan, FATA, Sind, Tell me which state has achieved the growth rate of above 4%? do mock your made up stats! Growth don't come on loans. it comes on capacity and capital building

 

[Singh]

to be paid in 3 years ending 2015

i can say the same about India than

i was thinking of 4% growth.3.7% was disappointment.

3-4% growth in Pak economy means 5-6bn$ added to the GDP.

A 5-6% growth of Indian economy means 90-120bn$ added to the GDP

figures from : TradingEconomics.com - Economic Data for 196 Countries

 

[sukhish]

growth planned for 2012 was 4.1% but achieved only 3.7%

growth planned for next year is 4.7%.and many things are on positive note now

decreased inflation
stock exchange on rise

so even if 4.5% than this is better for Pakistan
while under imran khan growth will be on fire

I know things are changing in pakistan no doubt. but also don not think that indians don't want pakistan to grow. pakistan growth is good for the this region.

 

[sob]

GDP growth is one aspect. Headline inflation which is threatening to touch double digits will put pressure on the Pakistani Rupee. Any devaluation of PR will be a double whammy-- Increase in cost of imports and increase in amount of debt repayment.

Just repaying the loans will not be enough, fresh investment is required to sustain the growth levels.

 

[pankaj nema]

Pakistan is steadily moving towards bankruptcy

It has been estimated that LATEST by August 2015 Pakistani economy will collapse

After US withdrawl from Afghanistan ; Pakistan will not get any money from
US / WB/ IMF/ ADB

The ONLY option left for Pakistan is to SELL Balochistan to China

 

[farhan_9909]

3-4% growth in Pak economy means 5-6bn$ added to the GDP.

A 5-6% growth of Indian economy means 90-120bn$ added to the GDP

figures from : TradingEconomics.com - Economic Data for 196 Countries

let suppose if pak growth next year is 4.5%(planned 4.7%) because last year jump was from 2.4% to 3.7%
than pak will add roughly 11 billions as this year gdp was roughly 230billions to gdp next year
which is good enough

and why you started comparing with India?dont you consider the population factor?

And After that growth might be 6%

 

[farhan_9909]

GDP growth is one aspect. Headline inflation which is threatening to touch double digits will put pressure on the Pakistani Rupee. Any devaluation of PR will be a double whammy-- Increase in cost of imports and increase in amount of debt repayment.

Just repaying the loans will not be enough, fresh investment is required to sustain the growth levels.

Pkr value decreased from 66 in 2008 to 95 recently against dollars

steps were taken to reduce inflation

while i never meant that pak is enjoying a stable economy

What i meant is that the economy is recovering

 

[sob]

farhan, you can not taking inflation as a factor. IMF is warning about it. We have seen how high inflation knocked off our growth.

Sorry, just checked the figures for September the inflation is at 8.7% while in August was 9.05% and in April was 11%. but surprisingly the value of PKR v/s US Dollar has remained almost static for better part of this fiscal.

 

[farhan_9909]

farhan, you can not taking inflation as a factor. IMF is warning about it. We have seen how high inflation knocked off our growth.

good that they informed them

they might take some steps

 

[sob]

good that they informed them

they might take some steps

I just corrected myself, you may see my full post.

 

[farhan_9909]

since last week the value of Pkr started decreasing again but was constant for the past few weeks

if we managed to keep inflation at 7% TILL 2013 June than we might even achieve 5% growth rate

as said before the economy is doing much better than exactly one year before