*LAHORE: *International Monetary Fund (IMF) post-program monitoring reportfor Pakistan has raised serious economic concerns for Pakistan.
IMF is predicting gross external financing needs are projected to touch $27billion by next financial year.
Its report highlighted risks to Pakistan’s debt sustainability have risensince the Article IV consultation in June 2017 and increase in borrowingswould contribute to external debt touching $103.4 billion by June 2019,predicted the IMF.
The Washington-based lender stated Pakistan had taken strides in improvingits debt profile in last few years, but the public and publicly guaranteeddebt remained around 70 percent of GDP in FY 2016-17 but is expected toslightly fall over the medium-term.
IMF said Pakistan’s elevated debt level in contrast to several emergingmarkets indicated fiscal imbalances under “relatively benign real sectorassumptions” read the report.
It highlighted the baseline debt path also crossed the limit on public debtlevels set forth in the revised Fiscal Responsibility and Debt LimitationAct (FRDLA). The report stated the gross financing needs are estimated tostay higher throughout the forecast period.
IMF advised for improving public debt sustainability and buildingsufficient fiscal buffers, sustained fiscal consolidation was required. Thereport pinpointed external debt remains sustainable but is susceptible torisks as external borrowing is predicted to rise and forex reserves willkeep their downward slide due to present financial policies.
Pakistan’s public debt and publicly guaranteed debt at end of FY 2016-17touched 69.7 percent of GDP reaching around 70 percent of FY 2015-16, saidthe report. Also, public debt leaving guarantees aside was recorded at 67percent of GDP.