Pakistan was suffering from a balance of payments crisis 18 months ago and remains vulnerable to shocks and a risky market for investors.
The IMF representative in Islamabad, Paul Ross said political uncertainty, chronic insecurity and a budget deficit inflated by spending to tackle militancy are threats to recovery.
However, Ross said the outlook is still brighter than the one two years ago.
Inflation has dropped to 13 per cent, foreign reserves are in a better position and the current account deficit has come down to 3 per cent of GDP this year.
Inflation in 2008 was 25 per cent, central bank reserves had fallen drastically and current account deficit climbed to 8.5 per cent.
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