Credit goes to Pak people and the current administration.
Pak zinda and paainda.
Pakistan to retain growth, says IMF: Govt asked to take more tightening measures
By Our Correspondent
WASHINGTON, Sept 22: The IMF has predicted that growth rate in Pakistan will remain strong in 2005, underpinned by robust agricultural and manufacturing growth, and supportive macroeconomic policies.
The International Monetary Fund (IMF) observes that Pakistan’s fiscal policy needs to be managed tightly for reducing burden on monetary policy to contain demand pressures.
It says strong growth in the exports of cotton manufactures in early 2005 suggests that Pakistan’s investments in the textile sector in anticipation of the expiry of quotas are paying off.
The IMF World Economic Outlook report, released in Washington on Thursday, projects a robust growth rate of 4.3 per cent for the international economy during the last quarter of 2005 and in 2006.
“But a number of developments concern us,” warned Raghuram Rajan, IMF’s economic counsellor and research director. These include the excessive dependence of global demand on consumption, especially in the United States, the elevated level of asset prices, particularly housing, and the high and volatile price of oil.
These factors have “increased downside risks to our forecasts”.
“The downside risks to our forecasts have thus increased,” Mr Rajan added.
Reviewing Pakistan’s economic prospects for 2005-06, the report warns that an important challenge facing the country is to deal decisively with the overheating of the economy, and advises authorities in Islamabad to “stand ready to take additional monetary policy tightening measures”.
The report also urges Pakistan to give priority to energy sector reforms.
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http://www.dawn.com/2005/09/23/top2.htm
