WASHINGTON: The International Monetary Fund on Thursday released the country report on Pakistan, praising the government for strengthening macroeconomic resilience.

The report notes that the country’s outlook for economic growth is favorable with real GDP estimated at 5.3 per cent in FY 2016-17 and strengthening to 6 percent over the medium-term.

“Macroeconomic resilience was strengthened during the three-year Extended Fund Facility (EFF)-supported programme completed in September 2016: growth increased, the fiscal deficit was reduced, and foreign currency reserves recovered,” the report said based on Article IV consultations.

The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation 1 with Pakistan on June 14. Meetings with Pakistani officials were held in March and April in Dubai.

According to the report, structural reforms were set in motion; long-standing fiscal and energy sector constraints started to be tackled, and social safety nets were strengthened.

However, the report said that while the successful implementation of business climate and financial inclusion reforms has continued, some renewed accumulation of arrears in the power sector has been observed.

Published in Dawn, July 14th, 2017