Pakistan economy on right track: IMF

Updated at: 1748 PST,  Tuesday, April 21, 2009  ISLAMABAD: The main challenge for Pakistan’s fragile economy was to restore the confidence that is now on right track.  This was said by International Monetary Fund’s Resident Representative in Islamabad Paul S. Ross, while talking to Geo News here on Tuesday. He said the Pakistan’s central bank has cut its interest rate from 15 to 14 per cent which is likely to reduce further in the future. However, he said, it was essential to trim down the inflation and increase the foreign exchange reserves (FER).  “The government should also not take loans from the State Bank to bring improvement in the economy,” Ross noted. He further said that Pakistan should have foreign exchange reserves equal to at least three months in the prevailing condition.