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The report termed fiscal consolidation as the key to saving official reserves and exchange rate stability of the country. It says, the fiscal consolidation may temporarily be costly in terms of growth prospects in the short term.

However, long-run prosperity and growth could only be achieved by augmenting the country’s long-term equilibrium growth path by expanding production capacities and productivity.

The report says, Pakistan was currently confronted with the challenges like high inflation, low growth, and low levels of official foreign exchange reserves.
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Category
Asia
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