Abstract
This paper discusses economic performance status and policy developments of Pakistan. Amid setbacks to structural reform, the authorities have made substantial progress in restoring economic stability. Economic activity continues to strengthen gradually. International reserve buffers are increasing amid a broadly stable current account deficit. However, there are number of risks to the economy. Slower growth in key advanced markets such as China and the Gulf can further erode export competiveness. The Pakistani government is determined to maintain fiscal consolidation in FY 2015/16 and over the medium term. Continued tax administration reforms are important for further improving tax compliance and supporting revenue mobilization.
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