Speaking of challenges, the first and foremost is the export decline, which entered into 10th straight quarter in Q1-FY17. The comfort provided by remittances, in terms of covering the trade deficit, has also weakened lately.
On the fiscal side, the government is committed to meeting the Economic Policy Review Department  Page 1  State Bank of Pakistan budget deficit target for this year, without compromising on essential development spending. This will be crucial from public policy standpoint.