IMF concerned over rising inflation, fiscal deficit in Pak
April 18th, 2011 - 2:29 pm ICT by ANIIslamabad, Apr 18(ANI): The International Monetary Fund (IMF) has reportedly expressed concern over rising inflation in Pakistan and growing uncertainties over keeping fiscal deficit within a 5.5 per cent target set by the federal government last month.
According to the Dawn, the IMF has conveyed its concern to the government over the twin risks through its resident mission in Islamabad.
The IMF believes that 5.5 per cent or higher fiscal deficit was ’simply not sustainable’ in the given economic conditions.
“The fiscal deficit of 5.5 per cent per se was not bad provided the economy maintains a growth rate of more than six per cent, but it was unsustainable when GDP is growing at a nominal rate,” the IMF is reported to have told the Pakistan Finance Ministry.
The gap would need to be bridged through additional borrowing, triggering more inflation, also contributed by international commodity prices, particularly of oil. (ANI)
- India poised to grow at 8 percent, inflation worrisome - Apr 25, 2010
- Inflation key challenge for India as growth slows: IMF - Sep 20, 2011
- IMF unveils wish-list for economic crisis-hit Pakistan - Mar 12, 2011
- Pak Govt unveils 120-bn-rupee 'mini-budget' to meet IMF conditionalities - Mar 16, 2011
- RBI hikes key rates by 0.25 percent to curb inflation - Jan 25, 2011
- Pakistan economy collapsing - Jan 31, 2011
- IMF delegation extends Pak visit to finalise pending economic policy issues - Mar 09, 2011
- Highlights of the third quarter review of monetary policy - Jan 24, 2012
- Pakistan fails to get IMF assurance on $11.3 bn loan release - Apr 19, 2011
- India's central bank cuts rates to push growth (Lead) - Apr 17, 2012
- Pakistan fails to convince IMF to release final tranche of $11.3bn loan - Apr 19, 2011
- Emerging economies spur global recovery: IMF - Feb 24, 2011
- India back on pre-recession growth trend: World Bank - Feb 22, 2011
- India back on pre-recession growth path: World Bank - Feb 23, 2011
- Mukherjee says G.D.P will stand at 8.6 percent - Feb 07, 2011
Tags: commodity prices, dawn, economic conditions, economy, federal government, finance ministry, fiscal deficit, gap, gdp, international commodity, international monetary fund, international monetary fund imf, islamabad, nominal rate, pakistan, target, uncertainties