Differences remain between govt, IMF over setting basic economic targets

The economic team of the government of Pakistan, during policy-level talks with the International Monetary Fund (IMF), has shared with it the macro-economic framework, reported 24NewsHD TV channel on Tuesday.

Quoting its sources, the channel reported that differences persisted between the two sides over setting the basic economic targets.  

While the IMF, they said, had estimated that the GDP growth rate would not be more than 3.5 per cent in the next financial year (FY), the finance ministry, on the other hand, had predicted 3.7 per cent growth rate.

Similarly, sources told 24News, contrary to the government’s estimate that the rate of inflation in the country would stand at 11.8 per cent, the Fund had estimated that it would be 12.7 per cent.

They informed that a suggestion had been made during the talks that the development target in the agriculture sector would be 3.5 per cent, while 3.8 per cent in the services sector and four per cent in the industrial sector.

Sources explained that an amount of over $9700 billion was expected to be spent on the payment of interest on loans.

Similarly, they elaborated, the Fund had estimated that the current account deficit would stand at $4.6 billion, while the government, on the contrary, had estimated that it would be $4.2 billion. 

They informed that the country was expected to earn over $61 billion through exports and other means, while the export target of $32.7 billion was suggested for the next financial year. 

Likewise, they said that the finance ministry had estimated that imports would stand at $58 billion, while the IMF saw the imports reaching $62 billion.

Reporter: Waqas Azeem