IMF acknowledges improvement in business climate

Report confirms that inflation has started to stabilise in Pakistan

ISLAMABAD: The International Monetary Fund (IMF) has acknowledged that Pakistan's reforms programme is on track and already producing results.

According to a statement issued by the finance ministry on Sunday, the IMF in its latest report conceded that the business climate has improved and market confidence is returning.

The report confirmed that inflation has started to stabilise and the State Bank of Pakistan's stance that there is no need for a further interest rate hike is appropriate. Currently, the interest rate stands at 13.5 per cent.

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It stated that the Pakistan economy has witnessed significant improvements, including stability in exchange rates for five months and appreciation in rupee's value, adding that the government managed to reduce circular debt from Rs38 billion to Rs10 billion in July this year.

The report added that the government too provided an additional budgetary allocation of Rs20 billion to Rs30 billion to cover 10 per cent down payment by beneficiaries of affordable housing scheme under the Naya Pakistan Housing Authority.

(With additional input from News Desk)