Islamabad: The International Monetary Fund has said Pakistan’s economy is at a high risk of deteriorating into crisis. The IMF said that growth was too slow to significantly improve people’s living standards in the country.
According to the Daily Times, the organization has approved a 6.7 billion dollars loan package to help Pakistan revive its ailing economy and prevent a balance of payments crisis.
The IMF said that executive directors noted that Pakistan’s economic vulnerabilities and crisis risks are high, with unsustainable fiscal and balance of payments positions, the report said.
It added that a lack of reliable electricity supply and a difficult security situation in large parts of the country have contributed to the deterioration.
The Pakistani rupee declined about five percent against the dollar during the 2012-2013 fiscal year.
According to the report, the IMF warned Pakistan that its economic growth could be worse than expected next year due to strict austerity measures built into a 6.7 billion dollars rescue loan.
First Published: Friday, September 13, 2013, 16:41