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’s Agha weighs future after poor T20 World Cup campaign
- Pakistan suffered defeats at hands of heavyeights England, arch-rivals India in the tournament
- Pakistan’s middle order often did not click while spinners could not exploit turning conditions
Sri Lanka’s Sanath Jayasuriya said he will step down as head coach, while Pakistan’s Salman Agha said he will take time to decide whether to remain captain after both teams’ poor campaigns at the Twenty20 World Cup.
Tournament co-hosts Sri Lanka made the Super Eights but the 2014 champion lost all three matches to finish at the bottom of Group Two.
“I thought it was time to give it (the job) to someone else,” Jayasuriya said after their narrow defeat to Pakistan on Saturday.
“That’s why about two months ago I’d said during the England series that I don’t have hopes of staying in the job for long. I’d taken this decision by then.
“I thought I’d be able to leave as coach on a good note in the World Cup. I wasn’t able to do that as well as I’d like, and I’m sad about that.”
The former captain, whose contract runs until June, said he was yet to convey his decision to Sri Lanka Cricket.
“I haven’t given SLC any news officially yet. They don’t know that I am going to say this even. I will need to go and discuss with them.”
It was an underwhelming tournament for Pakistan as well that included a comprehensive defeat at the hands of arch-rivals India in a group match.
Pakistan’s middle order often did not click, while their slow bowlers could not make the most of the spin-friendly conditions in Sri Lanka where they played all their matches.
“We have underperformed in the whole tournament,” captain Agha told reporters.
“We are out of the semis due to our failure in decision-making in pressure situations.”
Agha said he and head coach Mike Hesson took full responsibility for their poor performance in a global multi-team event.
He was unhappy with his own form but said he was not in a hurry to take a call on whether to stay as Pakistan’s white-ball captain.
“I will go back and take some time to decide,” the 32-year-old said.
“Because at this point of time stepping down would be an emotional decision.”
