India will grow at predicated rates in next two years , Pakistan may slip
New Delhi: While there has been no change in growth rate forecast for the country in International Monetary Fund's latest report, it has warned Pakistan against change of reform policy in future.
That country will face economic "instability" if it stops reforms in the wake of adverse judgement by its Supreme Court in the case filed against Prime Minister Nawaz Sharif and his family members.
Hearings have been completed and the apex court has reserved its verdict in the case in which corruption charges have been levelled against them. Besides setting up off-shore companies the family is alleged to have acquires properties outside including four expensive flats in London.
The case was filled following leakage of Panama Papers which had details of the deals entered into by him and his sons and daughter.
The political situation is fluid in that country in the run-up to the verdict which may be delivered soon.
As far India is concerned the agency, set up to help different countries maintain fair balance of payments, has estimated that it will grow at 7.2 and 7.7 per cent rates in next two financial years. The same forecast had been made in April in its last report.
Though it has noted with satisfaction the reform measures taken by the country in its latest report released on Monday it has expressed itself in favour of further reforms in the manufacturing sector. The manufacturing base should be expanded and abundant labour pool gainfully employed, it has suggested.
In addition to India, it has found Brazil and Russia emerging as growing economies.It is not happy with the growth rate in the United states.
The growth rate will be 2.1 per cent per annum in 2017 and 2018, it has forecast. The IMF, had earlier predicted 2.3 and 2.5 per cent growth . It has not given any reason for slower growth.