June 14 (Bloomberg) -- Pakistan will fail to meet its budget deficit target as the government spends more on the fight against Taliban insurgents and weaker growth eats into revenue.
The budget gap for the year starting July 1 is estimated at 4.9 percent of gross domestic product, Junior Economics Minister Hina Rabbani Khar said yesterday. That breaches the 4.6 percent goal set by the International Monetary Fund as part of its $7.6 billion bailout of South Asia’s second-biggest economy.
“Terrorist attacks have undermined Pakistan’s macroeconomic stability and dampened growth prospects,” Khar told parliament in Islamabad. “The global financial crisis seeped into the economy causing substantial decline in exports and a visible decline in foreign direct investment.”
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IMF has to make adjustments.
Somebody make a call, Obama?
Gerald
Internet Anthropologist
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