In a press briefing unveiling the Global Financial Stability Report for April 2024, the International Monetary Fund (IMF) shed light on Pakistan’s economic landscape, emphasizing both progress and the need for further action. The IMF spokesperson addressed the media, highlighting projections regarding inflation and the necessary steps ahead.
IMF representative Mr. WU addressed inquiries regarding Pakistan, acknowledging the multifaceted nature of inflation dynamics. “Maybe I could add something about inflation in frontier economies,” Mr. WU stated, underscoring the dual role of supply and demand in driving inflation. He noted the tightening of monetary policy in Pakistan over recent years aimed at inflation control, with projections indicating a downturn. However, Mr. WU stressed the imperative for continued efforts, both on the demand and supply sides of the economy.
“Inflation is projected to come down, but more work needs to be done,” emphasized the IMF representative, echoing the sentiments shared during the briefing. He emphasized the necessity for fiscal consolidation and structural reforms, particularly in sectors such as energy and state-owned enterprises. Mr. WU highlighted common challenges faced by economies in the frontier space and assured ongoing engagement between the IMF and Pakistan to address these issues.
Responding to inquiries about regional dynamics, particularly focusing on South Asia and Pakistan’s inflation challenges, the IMF representative elucidated the complexities of the situation. “Pakistan is in a program, and there are really macro challenges,”
Leave a Reply