Pakistan Economy: IMF appreciates macro progress; privatization remains a hurdle – By IMS Research
Pakistan Economy: Pakistan heads closer to the completion of the IMF program for the first time in its history, following the release of the second last tranche, with waivers granted on missed targets pertaining to the privatization of PSEs. IMF’s macro review substantiates our view that Pakistan’s top down scenario has improved, but stress has been laid on taking measures to ensure sustainability.
Pakistan succeeded in meeting most targets, particularly those related to fiscal deficit and enactment of amendments to SBP law. Concerns, however, prevail over not making noticeable progress with regards to privatization transactions by FY16 end.
IMF has commended GoP’s measures to maintain circular debt at PkR326bn, attributing a more hands-on approach. Going forward, more power tariff surcharges and gas tariff hike seem likely to maintain the present state.
By: Intermarket Securities Limited