Macroeconomic Forecast Pakistan

BMI View: The IMF's decision to ramp up its Stand-by loan to Pakistan to US$11.3bn, from US$7.6bn previously, has provided further insurance against adverse external developments. Pakistan's foreign exchange reserves - at US$12.85bn on August 22 - are now sufficient to cover the prudential threshold of three months worth of imports. The rupee has stabilised significantly too, although the unit remains on a depreciative trajectory. As for the state finances, they remain wobbly, albeit not as unbalanced as in 2008.

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