IMF says Pak economy improving but warns of inflation

Islamabad: The International Monetary Fund on Saturday said while Pakistan's economic indicators are generally improving with growth gaining momentum, core and headline inflation are also rising which is a matter of concern.

Pakistan received a USD 6.7 billion IMF bailout package last year to help the country achieve economic reforms, especially in energy sector, which is facing an acute crisis.

IMF staff mission, led by Jeffrey Franks, visited Dubai during May 1-9 for discussions on the third review of Pakistan's bailout package.

The mission met with senior officials from the Ministry of Finance and the State Bank of Pakistan (SBP).

"The IMF mission...Is encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving investment and growth," a statement released by it said.

"Economic indicators are generally improving, with growth gaining momentum, external finance improving, and credit to the private sector rising. However, core and headline inflation are also rising," it quoted Franks as saying.

The mission urged the SBP to remain vigilant on recent inflationary pressures in their monetary policy decisions, while continuing their ambitious programme to rebuild reserves.