Improving ties with India would help Pakistan's economy: IMF

WASHINGTON: Noting that investment climate in Pakistan is not good, the International Monetary Fund (IMF) today said improving relations with India and the recent WTO tariff exemptions for 75 items should help the country to overcome its current economic crisis.

The IMF mission chief for Pakistan Adnan Mazarei in a conference call with reporters at conclusion of its consultations with Pakistan said the country's security scenario and general economic health are a problem, even though its leaders have taken some steps to address the situation.

Mazarei said it is correct to say that Pakistan economy is facing huge vulnerabilities and risks. It is because of building global economic pressures and needs to build buffers, he added.

Investment climate in Pakistan is not very good, and steps need to be taken to attract it, Mazarei said.

"Improving relations with India and WTO tariff exemptions for 75 items recently should help Pakistan," the IMF official said in response to a question.

Noting that pressure on rupee could continue, he added those balances of payments are also affected by political situation in the country.