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Senior State Bank of Pakistan (SBP) officials believe that Pakistan"s economic situation has changed in recent months and that the country is not in danger of default.

Officials are optimistic that with the International Monetary Fund (IMF) programme in place, meeting the external financing requirements will be easy.

According to references, the IMF has convinced Pakistani authorities that the $1.17 billion tranche will be approved by the Executive Board after August 15.

Inflation is expected to range between 18 and 20 percent in the current fiscal year, according to the central bank. There is no need to panic, according to the central bank, because the country"s external debt is sustainable.

According to sources, despite the political ambiguity, the IMF is aware that all political parties in Pakistan support the Fund"s programme.

According to sources, friendly nations have assured Pakistan of their support following the approval of the IMF programme, and the country will receive substantial funds from friendly countries.

GDP growth has varied between 5% and 6% over the last two years. However, due to an increase in imports and a rising deficit, the growth was not sustainable. The central bank anticipates GDP growth of 3 to 4% in the current fiscal year.

According to central bank officials, Sri Lanka"s current account deficit is three to four times that of Pakistan. Furthermore, Sri Lanka took more than two years to establish the policy rate and exchange rate, implying that Pakistan"s situation should not be compared to Sri Lanka"s.