IMF predicts more inflation, unemployment in Pakistan
The international lender cuts Pakistan’s GDP growth rate to 0.5% for FY23
ISLAMABAD (UNA): The International Monetary Fund (IMF) on Tuesday predicted more inflation and unemployment in Pakistan.
The international lender in its report, “World Economic Outlook (WEO): A rocky recovery” released on Tuesday, stated that predicted the increase in already scorching inflation and unemployment and slow economic growth in Pakistan, and shows the possibility of improvement in the economic conditions of Pakistan next year.
The Fund also stated that Pakistan’s GDP is projected to be 3.5 percent declining 0.5 percent in FY24 which stood at 6 percent in FY22, the government had set the target of economic development at 5 percent. According to the IMF, compared to last year, the rate of inflation this year is more than double, i.e. 27 percent, and the unemployment rate has been predicted to reach 7 percent.
The report stated that According to the IMF, the current account deficit will be limited to 2.3 percent of GDP. The report has said that next year GDP growth will be 3.5 percent with clear improvement and inflation will decrease to 21.9 percent.
The IMF further predicted that the current account deficit will be contained within 2.3 percent of the Gross Domestic Product (GDP). In addition, the IMF’s report forecasts a 3.5 percent growth in GDP for the coming year, indicating significant progress.