Emerging Asia Economics

Emerging Asia Economics Weekly

7 July, 2017

External pressures mounting in Pakistan

The “devaluation” of the Pakistani rupee earlier in the week is a reminder of the country’s precarious balance of payments position. Pakistan will soon be forced to either let the currency fall much further, tighten monetary policy aggressively, or make another loan request from the IMF. The upshot is that after a couple of years of accelerating growth, the economy is likely to slow in 2018-19.

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