Get the latest news and updates from Dawn
ISLAMABAD: Following the release of a $1.1 billion tranche for Pakistan, the International Monetary Fund (IMF) has identified Pakistan’s economic exposure to the Gulf Cooperation Council (GCC) as its most acute external vulnerability.
In its staff report, the lender warned that “the war weighs on the near-term outlook as Pakistan is highly exposed to energy imports and remittances from the Gulf countries as well as to global financial conditions”.
According to the report, 81 per cent of Pakistan’s fuel imports originate in the GCC region, while 55pc of remittances — equivalent to about nine percent of the GDP — flow from these economies.
The IMF noted: “A significant disruption to the GCC economies and/or return of migrant workers could weigh on these flows, a major source of financing for consumption and the balance of payments”.
