Posted 3/10/2024, 2:26:31 AM
Pakistan Sidesteps Some IMF Reforms But Still Needs Funds to Avoid Default
- IMF ignores Pakistan's 'managed exchange rate', allowing policymakers to stabilize economy despite poor performance
- IMF advised 50% import liberalization in 2nd half of fiscal year, but Pakistan did not follow
- Continuous IMF and ally support needed to avoid default
- Import cuts helped current account deficit stay low
- New government needs astute finance minister to handle IMF negotiations for potential $6B loan
