ISLAMABAD: A leading international financial institution on Wednesday said Pakistan’s implementation of economic reforms for the next few months was crucial for macroeconomic stability and gradual recovery of growth in the South Asian state.
The Asian Development Bank (ADB) shared its assessment in a report dealing with the overall economic outlook of the region, saying that the country’s gross domestic product was expected to recover modestly to 1.9 percent in the ongoing fiscal year from last year’s 0.3 percent.
However, it warned of global price shocks and slow international growth amid Pakistan’s already challenging financial situation which led its leaders to seek a $3 billion bailout from the International Monetary Fund (IMF) earlier this year.
As the country witnessed rapid depreciation of national currency along with dwindling foreign exchange reserves, the IMF insisted it to carry out stringent economic reforms by eliminating subsidies, increasing power tariffs, and following market-driven exchange rate mechanism for its financial recovery.
“Pakistan’s economic prospects are closely tied to the steadfast and consistent implementation of policy reforms to stabilize the economy and rebuild fiscal and external buffers,” ADB Country Director for Pakistan Yong Ye said in a statement.
“Greater fiscal discipline, a market-determined exchange rate, and speedier progress on reforms in the energy sector and state-owned enterprises are key to reviving economic growth and protecting social and development spending,” he added.
The ADB acknowledged the country’s economic woes in the wake of last year’s floods that damaged crops and public infrastructure on a massive scale.
It also mentioned political instability as a negative factor and pointed out that inflation had remained on the rise in Pakistan.
The report maintained the implementation of the economic adjustment program and smooth general election within the next few months were expected to boost economic confidence, adding the easing of import controls was also going to support investment.
The ADB predicted that inflation was expected to cool down from 29.2 to 25 percent in the ongoing fiscal year, though sharp increases in energy tariffs under the economic adjustment program and any further weakening of the Pakistani rupee would keep the inflationary pressures elevated.
ADB says Pakistan to recover ‘modestly’ if it implements stringent economic reforms
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ADB says Pakistan to recover ‘modestly’ if it implements stringent economic reforms
- The multilateral development bank maintains elections in Pakistan will boost economic confidence in the country
- It says energy tariffs and any further weakening of the Pakistani rupee will keep inflationary pressure elevated
Pakistan says 10 militants killed during counterterror operation in southwest
- Security forces gun down 10 militants belonging to Tehreek-e-Taliban Pakistan outfit, says army’s media wing
- Counterterror offensive takes place as Pakistan faces surging militant attacks in Khyber Pakhtunkhwa, Balochistan
ISLAMABAD: Pakistani security forces killed 10 militants during a sanitizing operation in the southwestern Zhob district, the military’s media wing said on Thursday, amid a surge in militant attacks across the country.
Security forces gunned down eight Tehreek-e-Taliban Pakistan (TTP) militants in Balochistan province’s Zhob district earlier on Tuesday, the Inter-Services Public Relations (ISPR) said.
The forces further carried out a sanitization operation in the same district on Wednesday to hunt down the remaining TTP militants, the ISPR said.
“During the conduct of operation, own forces tracked down khwarij on multiple routes and effectively engaged their locations,” the military’s media wing said.
“After an ensuing fire exchange, ten Indian-sponsored khwarij were sent to hell.”
Pakistan’s military and civilian government frequently use the term “khwarij” to describe the TTP. The army said weapons, ammunition and explosives were recovered from the slain militants who were involved in “terrorist” activities.
The military said sanitization operations were being carried out in the area to locate other missing militants.
The security operations take place as Pakistan witnesses a surge in militancy in its northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces that border Afghanistan.
Islamabad accuses Afghanistan of allowing the use of its soil and India of backing militant groups for cross-border attacks against Pakistan. Kabul and New Delhi deny this.
Mineral-rich Balochistan has been the site of a low-lying insurgency for the past couple of years. Ethnic Baloch separatist militants accuse the state of depriving the local population of a share in the province’s resources.
Islamabad denies the allegations and says the government is carrying out several development initiatives to uplift the local population in Balochistan.
