Posted 10/13/2023, 2:12:46 AM
IMF Warns of Risks to Pakistan's Economy and Banks from High Debt, Inflation and Slowing Growth
- IMF warns of risks to Pakistan's banks from high exposure to government debt
- Pakistan's reserve coverage remains precarious at only 70% of short-term foreign debt
- Inflation in Pakistan expected to peak in 2023 but remain elevated in 2024
- Prolonged high interest rates could create adverse feedback between government and banks
- Growth in Pakistan contracted in 2023 due to flooding, inflationary pressures and import curbs
