Missing IMF targets?
Pakistan might be more likely to fall short of the targets agreed upon with the IMF due to floods.
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The biannual Pakistan Economic Update of the World Bank suggested that the international lenders (including IMF) are not in the mood for giving any substantial concessions to Pakistan on the agreed-upon conditions, particularly the increase in electricity prices.
The macroeconomic outlook predicted by the World Bank in the latest report is based on the assumption that the IMF program will remain on track.
However, the same report revealed that the primary balance (excluding grants) would be -3% of the Gross Domestic Product (GDP) against the IMF’s target of +0.2% (the biggest slip). The debt-to-GDP ratio even before the floods was estimated at 74.4% and has now been revised to 71% after the floods (for the end of FY 23) against the IMF target of 68.2%.
GRAPHIC OF THE DAY
Primary Balance, World Bank estimates (pre-flood, post-flood) vs. IMF target)
INSTAGRAM POST
👀 Look at the graph for Tomatoes — www.instagram.com
Weekly Data Watch (Commodities):
• Prices of Tomatoes (+27.4%) and Onion (+10.2%) rose vs. last week
• Fall in prices of Petrol (-5.2%), Daal Masoor (-5.1%), and Potatoes (-4.8%) helped moderate inflation
Visit: https://macropakistani.com/graphics/
View more
TWEET
What Else We’re Reading
Pakistan flood losses estimated at USD 40 billion: Ex-finance minister (Al Jazeerah)
Quarterly cement sales plummet 25% (Dawn)
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