Emerging Asia Economics

Emerging Asia Economics Update

5 December, 2018

Pakistan: external position improving but growth to slow

The collapse in the rupee and an aggressive tightening of monetary policy is leading to a welcome fall in Pakistan’s external imbalances. However, with most of the adjustment taking place through a collapse in imports rather than a pickup in exports, the fall in the current account deficit is only being achieved at the cost of sharply slower growth.

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