Pakistan; 2002 Article IV Consultation, Third Review Under the Poverty Reduction and Growth Facility Arrangement, and Request for Waivers of Performance Criteria—Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Pakistan — An Update

The economic outlook remains clouded by regional and domestic security concerns. Real GDP growth and inflation were broadly in line with program projections in 2001–02. The balance of payments position unproved faster than expected. The budget deficit target for 2001–02 (as set during the first review) was met, despite a shortfall in the Central Board of Revenue (CBR). Broad money increased strongly in 2001–02, despite efforts to sterilize foreign exchange inflows. Reforms in the financial sector made significant progress.