- The economy has finally started to show signs of relative stability by achieving the first set of targets set by International Monetary Fund, which happens to be the prerequisite for the second tranche from IMF.
- As a matter of direct consequence of IMF’s revenue target the government is reluctant to cut the oil prices further and it has further decided to review petroleum prices on
monthly basis instead of fortnightly basis.
- All signs are that domestic inflation would be difficult to tame given relatively high POL and Food prices.
- While country’s burgeoning trade and current account deficits have shown some signs of improvements, it is imperative that the foreign exchange numbers are still very much against the country.
- The interest rates might go down in near future owing to tremendous pressure from business community provided that in addition to high interest rates, slowing exports orders have already made things worse for corporate.
- Country’s foreign exchange position would mainly depend on IMF as Pakistan has already approached IMF for $4.00 billion finance in addition to $7.5 billion stand by facility.
- Exchange rate would remain volatile in absence of any major investments from abroad.
Friday, May 14, 2010
Future Economic Outlook-does it cheer you up?
at 11:42 AM