The International Monitory Fund (IMF) issued the Global Financial Stability Report April 2024 in a press briefing wherein the IMF spokesperson said inflation is projected to come down in Pakistan but more work needed to be done.

“Maybe I could add something about inflation in frontier economies. It is, indeed, the case that both the supply and demand side contribute to inflation. So in that sense, policy is needed on both sides. In the case of Pakistan, for example, monetary policy has been tightening over the past two or three years to control inflation,” IMF representative Mr. WU said in a press briefing while answering a question about Pakistan.

“And inflation is projected to come down, but more work needs to be done,” the IMF representative said.

The IMF representative further added, “And that includes on the demand side; fiscal consolidation needs to be continued. But also on the supply side, including things like, you know, the reform of the energy sector, stateowned enterprises. And I think many economies in the frontier space actually face similar challenges as well. I think Fund staff continues to engage with Pakistan on this issue. And I should echo Tobias that there will be a regional economic briefing from the Middle East and Central Asia Department.”

Answering another question about regional mainly, about the Asian side, south Asian side, and primarily about Pakistan’s inflation said: “Pakistan is in a program and there are really macro challenges, which include the financial sector and central bank policies but also broader macro and fiscal issues. And, you know, the adjustments oftentimes take some time to take hold. Again, the regional briefings will go deeper into those specific issues.”