In their view Pakistan suffered from a serious credibility gap and, until and unless, the present Government demonstrated a strong commitment and delivered most of those unfulfilled promises upfront, there was no way Pakistan could qualify for any medium-term assistance. Pakistan, therefore, was asked to prove its seriousness by first completing all those actions the previous governments had promised but not fulfilled.
The Bank maintained its assessment of business fixed investment as “showing signs of picking up.” This rather cautious assessment, despite the fact that business fixed investment  2  BIS central bankers’ speeches  this fiscal year is likely to turn out to be higher than in the previous year, reflects the following: (1) the fact that firms continue to feel that their capital stock is still excessive; (2) the shift of production to overseas locations; (3) the deceleration in overseas economies; and (4) the appreciation of the yen.