The IMF statement said that The investments in the local currency assets exhibited the confidence of foreign financers, however, the risks of certain impacts on the economies of Pakistan and India could not be rejected due to the international trade war.
The institution admitted that the visible hike was seen in tax collection, however, it is likely for a decrease in economic growth. The economic growth rate was previously recorded at 3.3 per cent while it is expected to stand at 2.4 percent this year. The pace of growth is likely to go up after the current financial year.
IMF also stated that Pakistan has recently started implementing the financial plan of the institution and its economy needed a financial adjustment. It said that the fiscal deficit had been witnessed more than the expectation in the previous year.
