Mar 18, 2011
| Last Updated
- The IMF will continue to back Pakistan but will seek stronger fiscal tightening, which will boost inflation and reduce government popularity and political support.
- Remittances, portfolio inflows and foreign loans are critical for the current account to weather higher oil prices and falling FDI.
- U.S.-Pakistan relations are at a critical point, and there is little hope for a breakthrough in the India-Pakistan negotiations; meanwhile, extremists may continue to suppress the reformists.
Macroeconomic Dynamics: No Light at the End of the Tunnel
Pakistan’s GDP growth is on track to slow[...]
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