Islamabad (APP): The International Monetary Fund has termed Pakistan’s economic condition as “favorable” with improved availability of energy, and growth-supporting structural reforms, said a report released by IMF .

According to the report, 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.