Pakistan: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of Performance Criteria and Request for an Arrangement Under the Resilience and Sustainable Facility -Press Release; Staff Report; and St

First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of Performance Criteria and Request for an Arrangement Under the Resilience and Sustainable Facility -Press Release; Staff Report; and Statement by the Executive Director for Pakistan

Author: International Monetary Fund. Middle East and Central Asia Dept.

Pakistan: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of Performance Criteria and Request for an Arrangement Under the Resilience and Sustainable Facility -Press Release; Staff Report

Volume/Issue: Volume 2025 Issue 109

Publication date: May 2025

ISBN: 9798229011310

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Topics covered in this book

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Inflation , Economics- Macroeconomics , Public Finance , Taxation - General , Environmental Economics , Natural Disasters , Public Policy- Environmental Policy , inflation surge , price flexibility , energy-inflation Passthrough , energy inflation , inflation Passthrough , Inflation , Energy pricing , Energy prices , Oil prices , Global , monetary policy committee , enterprise risk , policy rate remains , fund disbursement , Policy discussion , policy priority , Pakistan CCDR , Climate change , Climate policy , Natural disasters

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Summary

The authorities’ policy efforts have continued to bear fruit. Financial and external conditions have continued to improve, with a current account surplus in the first eight months of FY25 and reserves exceeding program projections. Inflation has recently declined to historical lows, although core inflation remains elevated at around 9 percent. The economic recovery is continuing, although growth in FY25H1 was somewhat lower than anticipated.