Pakistan's Economic Optimism: A Resilient Rebound

Governor Jameel Ahmad of Pakistan's central bank defends the country's economic growth projections, anticipating a 4.75% increase despite the IMF's downgrade, citing resilient agriculture and eased financial conditions. Export declines are attributed to low global prices, while remittances bolster reserves amidst strategic debt issuance plans.

Pakistan's central bank governor, Jameel Ahmad, remains optimistic about the country's economic growth, projecting an increase of up to 4.75% this fiscal year. This comes in contrast to the International Monetary Fund's recent downgrade, as Ahmad stresses the broader and more durable nature of the recovery.

In an interview with Reuters, Ahmad highlighted the projected growth stemming from resilient agricultural activity and improved financial conditions, thanks to a substantial cut in policy rates. Despite a contraction in exports and a widening trade deficit, he maintains that early fiscal data points to a recovery across all economic sectors.

The divergence with the IMF occurs as Pakistan navigates a crucial balance-of-payments situation under a $7 billion IMF program. Ahmad notes that robust remittances are helping counterbalance the trade gap, with strategic debt issuance, including panda bonds, further supporting economic stability and growth prospects.

(With inputs from agencies.)