The International Monetary Fund has termed Pakistan’s economic outlook as “favorable” with improved availability of energy, and growth-supporting structural reforms.

According to latest report released by IMF, confidence of investors in Pakistan is growing as its economy has stabilized after completing a bailout program.

It cited Chinese infrastructure investments as one of the reasons for economic development.

The report highlights that hopes are pinned on the China-Pakistan Economic Corridor initiative which will link the China’s Xinjiang region with the Arabian Sea through Pakistan.

IMF report predicts six per cent GDP over the medium term due to stepped-up China Pakistan Economic Corridor investments.

The report urges Islamabad to allow greater exchange rate flexibility as the country’s foreign exchange reserves have declined in the context of a stable rupee-dollar exchange rate.