Senior officials of the State Bank of Pakistan (SBP) are of the view that Pakistan’s economic situation has improved in recent months and the country is not at risk of default.

According to sources, the officials are confident that with the International Monetary Fund (IMF) program secured, meeting the external financing requirements would not be a problem.

According to sources, the IMF has assured Pakistani authorities of prompt approval of the $1.17 billion tranche from the Executive Board after August 15.

According to sources, the IMF has assured Pakistani authorities of prompt approval of the $1.17 billion tranche from the Executive Board after August 15.

For the past two years, GDP growth has ranged between 5 percent and 6 percent. However, the growth was not sustainable due to an increase in imports and rising deficit. The central bank expects GDP growth for the current financial year to be around 3 to 4 percent.

According to the central bank officials, Sri Lanka’s deficit is three to four times compared to Pakistan. Moreover, Sri Lanka took more than two years to fix the policy rate and exchange rate, adding that Pakistan’s situation should not be compared with Sri Lanka.

Source: Pro Pakistan