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Pakistan: More bullish IMF forecasts

    Hasnain Malik
    Hasnain Malik

    Strategy & Head of Equity Research

    Tellimer Research
    9 July 2019
    Published by

    Higher GDP growth, lower twin deficits, lower government debt albeit with higher inflation – these are the changes in the latest IMF forecasts for Pakistan. These are contained in its report released on 8 July, following the approval of the US$6bn, 39-month programme (Extended Fund Facility). 

    These forecast changes reflect the fiscal, interest rate and FX rate policy changes already made and committed to, during the course of negotiations with the IMF. The prior April 2019 forecasts assumed no change of course by the government. 

    We reiterate our positive view on Pakistan equities, as laid out in our recent report, Pakistan: Cheap enough, 10 factors to make you brave enough.

    IMF macroeconomic forecasts under 2019-2022 programme

    Source: IMF