IMF sounds alarm bells as Pakistan’s economy slides to danger levels

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IMF sounds alarm bells as Pakistan’s economy slides to danger levels

The International Monetary Fund on Wednesday expressed serious concerns over the direction in which Pakistan's economy is heading and urged for a quick and effective look at the country's near-team policies to regain fiscal discipline.As part of its assessment, the IMF highlighted that Pakistan's fiscal deficit was all-set to reach 5.5 per cent of the country's GDP - considerably higher than Islamabad's previous prediction of 4.1 per cent. For the uninitiated, fiscal deficit occurs when a government's expenditure is greater than the government's revenue. And this gap is what IMF fears will widen in Pakistan at a time when rival India has projected a fiscal deficit of 3.3 per cent of its GDP for 2018-19 financial year.

The IMF board has also reportedly projected the economic growth rate to stand at 5.6 per cent instead of 6 per cent targeted by Islamabad.