IMF Chief economist cautions Pakistan over China

Shares
IMF Chief economist cautions Pakistan over China

BALI - The International Monetary Fund package may not be an easy deal for Pakistan as now IMF has cautioned Pakistan over on increased Chinese presence in Pakistani economy.

IMF chief economist Maurice Obstfeld cautioned Pakistan against increased Chinese involvement in the economy.

Addressing a news conference at the IMF and World Bank annual meetings in Bali, Obstfeld warned that the increasing role could bring both benefits and risks.

He stressed that Pakistan was facing financing gaps as it has been hit by a large fiscal and current account deficit, a low level of reserves and a currency he described as “too rigid” and over-valued.