Don’t derail the transition

PAKISTAN has reached a staff-level agreement with the IMF after completing the fourth review under its programme. Implementation of the Extended Fund Facility is on track, with progress on macroeconomic stability. The challenge is to translate the gains into sustained growth. Political and administrative disruptions that can derail this difficult transition must be avoided. The fiscal deficit has been contained at 2.6 per cent of GDP. The primary surplus has strengthened, supported by provincial cash surpluses and exceptional grants to the federal budget. Revenue targets have been met, though…