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Global Macro-Market Outlook

Pakistan Outlook: The Politics of Fiscal Austerity

Global Economics Outlook, GDP and CPI data for Pakistan

  • 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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