Pakistan, May 15 -- The International Monetary Fund (IMF) has said Pakistan's economic recovery remains on track due to steady policy implementation, while warning that the ongoing conflict in the Middle East could create fresh risks for growth, inflation and external stability.

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In its latest assessment released after completing the third review of Pakistan's programme under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), the IMF praised the government's reform efforts and economic management.

The Fund said Pakistan had made "significant progress" under both programmes, noting that strong fiscal and mone...