IMF Upgrades Pakistan's Growth Forecast

(RTTNews) - The International Monetary Fund (IMF) on Sunday said that Pakistan's economy is set to grow at a faster pace this year than estimated earlier, citing the government's initiatives to strengthen macroeconomic stability.

After concluding the second review of the aid program under the Extended Fund Facility (EFF), IMF said that the government has made notable progress in pushing ahead with policies to strengthen macroeconomic stability and reviving economic growth.

The lender forecasts the Pakistan economy to expand around 3.1 percent during fiscal year 2013/14, faster than the 2.8 percent growth it had projected earlier. It observed that the reform program remains broadly on track, and the government has met most of of the quantitative performance criteria by end December 2013.

Both the manufacturing sector and the service sector are performing well, with reforms in the electricity sector improving electricity supply and reducing unscheduled load-shedding.

"The mission recognizes the authorities' resolve to pursue agreed structural reforms to enhance medium term growth prospects and rebuild foreign exchange reserves to underpin investor confidence," IMF said.

In September 2013, the IMF agreed to lend Pakistan $6.7 billion over three years.