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IMF to provide $497 million to Pakistan

Staff writer ▼ | February 5, 2016
An International Monetary Fund (IMF) mission and the Pakistani authorities have reached staff-level agreement on the completion of the tenth review under the EFF arrangement.
Review   Economic activity remains in Pakistan robust
The agreement is subject to approval by the IMF Management and the Executive Board. Upon completion of this review, $497 million will be made available to Pakistan.

“Economic activity remains robust. Although a weak cotton harvest, declining exports, and a more challenging external environment are weighing on growth prospects, real GDP growth is expected to reach 4.5 percent in FY 2015/16, helped by lower oil prices, planned improvements in the energy supply, investment related to the China Pakistan Economic Corridor (CPEC), buoyant construction activity, and acceleration of credit growth.

"Headline consumer price inflation has begun to rise as the effects of past declines in commodity prices fade, and will likely reach around 4.5 percent by end of FY 2015/16. Nevertheless, inflation is expected to remain well-anchored by continued prudent monetary policy.

"Gross international reserves reached $15.9 billion in December 2015, up from $15.2 billion at end-September 2015 and covering close to four months of prospective imports".