ISLAMABAD, Feb 13: Economic woes complicating the country’s struggle against militants are easing thanks to a tough rescue plan backed by the International Monetary Fund, but the programme needs more than a year to succeed, the Prime Minister’s Adviser on Finance Shaukat Tarin said on Friday.

Budget and trade deficits had narrowed considerably, he told reporters. The budget deficit would decline from 7.4 per cent of gross domestic product in the past fiscal year to between 4 per cent and 4.2 per cent in the current year, he said. The nation’s current account deficit would decline from 8.4 per cent to 6.5 per cent, he said.

Inflation, which touched an annual rate of 25 per cent in October, was also declining, Mr Tarin said. The cost of imported fuel has dropped sharply in recent months.

“If you see all the indicators, we have achieved an improvement,” he said, but added: “If you think that turning it around would happen in three months, it will not be in three months. Such turnarounds take 18 months.”—AP