Pakistan: 2021 Article IV Consultation, Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, and Requests for Waivers of Applicability and Nonobservance of Performance Criteria and Rephasing of Access-Press Release; Staff Repo

2021 Article IV Consultation, Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, and Requests for Waivers of Applicability and Nonobservance of Performance Criteria and Rephasing of Access-Press Release; Staff Report

Volume/Issue: Volume 2022 Issue 027

Publication date: February 2022

ISBN: 9798400200212

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Topics covered in this book

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Exports and Imports , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , International - Economics , Environmental Economics , Environmental Conservation and Protection , Policy recommendation , test positivity rate , Covid pandemic , H , SOE sector reform , SOE debt , Greenhouse gas emissions , Public enterprises , Exports , Global , Middle East , North Africa , Central Asia

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Summary

Economic activity has rebounded strongly on the back of waning COVID-19 infections and expansionary fiscal and monetary policies. However, strong import growth—fueled by the macroeconomic policy mix, higher international commodity prices, and credit growth—have led to a marked deterioration of the external position. The current account deficit has widened, the rupee depreciated markedly, and inflation remains persistently high.