Geo Business

IMF terms talks with Pakistan constructive

ISLAMABAD: International Monetary Fund (IMF) has termed the talks with Islamabad constructive and added that the challenges faced by Pakistan were also discussed. Announcing the outcome of the talks with Pakistan during Nov. 9-19, IMF in its handout said that constructive discussions were held on Pakistan's recent economic performance and the challenges ahead, in light of uncertainties in the global economic environment. The outlook for 2011/12 is challenging. Although real GDP growth is projected at about 3½ percent and inflation is projected to decline, the external current account balance is projected to return to a deficit and global risk aversion and security concerns may limit capital inflows. The handout said that the authorities expressed their resolve to strengthen macroeconomic policies and continue to pursue reforms to enhance Pakistan’s medium-term growth prospects. Against this background, discussions centered on short-term steps to address vulnerabilities, specifically, the Pakistani authorities and the mission agreed that containing the budget deficit in 2011/12, a cautious monetary policy, and a responsive exchange rate would reduce vulnerabilities, contain inflation and protect Pakistan’s international reserves, the handout further said