Pakistan living beyond its means for several years, says report
Islamabad: Pakistan’s economy, a news site quoting an analysis has said that the country has been “living beyond its means for several years”.
Pakistan’s current account deficit widened 43 percent to USD 18 billion in the fiscal year that ended in June, while the fiscal deficit has ballooned to 6.6 percent of gross domestic product.
“Pakistan has been living beyond its means for several years now as evident from the widening current account and trade deficit”, Pakistan’s Dawn news quoting the Fitch Solutions’ analysis said.
As per the Fitch forecast, Pakistan’s GDP will post 5.4 percent growth during the ongoing fiscal, down from 5.7 percent last year while the country will clock slower growth over the coming quarters.
Pakistan looks forward to about USD 6 billion financial bailout for averting its balance of payments crisis from the International Monetary Fund. If a package is agreed on, it would be Pakistan’s 13th IMF bailout since the late 1980s.
The International Monetary Fund mission is in Pakistan and holding talks with officials over arranging an unspecified amount to help in addressing the balance of payment issue. As talks enter the final phase, the IMF set stricter conditions for Pakistan to implement in exchange for a bailout package much needed for economic revival.
IMF has demanded that Pakistan provide all details of China’s financial support to the cash-strapped country to avail a bailout package from it.