IMF, while reviewing the estimates related to Pakistan’s economy during the current financial year, has said that the inflation in Pakistan expected to decrease from two percent to 0.5 percent.
According to the IMF report, the growth rate is likely to be 3.5 percent in the next fiscal year. Similarly, the inflation rate is likely to increase further during the current fiscal year. While it is likely to remain low during the next fiscal year.
The IMF’s World Economic Outlook report states that inflation in Pakistan will remain higher than the target, while growth will remain low. In its report, the IMF estimated the current fiscal year’s inflation rate to be 27.1 percent. And the current account deficit to 2.3 percent of GDP.
According to the report, the unemployment rate in Pakistan last fiscal year was 6.2 percent. This fiscal year the unemployment rate in Pakistan will reach 7 percent. While the economic situation of the country predicted to improve in the next fiscal year.
According to the IMF report, inflation will decrease to 21.9% in the next financial year. Current account deficit is expected to be 2.4% of GDP in the next financial year.
The report said that the unemployment rate is likely to decrease from 7 percent to 6.8 percent in the next financial year. The government of Pakistan had planned to keep the economic rate at 5 percent during the budget during the current fiscal year. But it estimated to remain at 2 percent of the GDP after the flood disaster.
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The World Bank and Asian Development Bank have also predicted Pakistan’s growth rate to be between 0.6% and 0.4%. Regarding the average inflation, the World Economic Outlook shows that inflation in Pakistan will remain at 27.1 percent this year. Which is much higher than the government data.
Inflation expected to remain at 21.9% during the next financial year. Regarding the current account deficit, the IMF said that it will remain negative. And 2.3 percent of GDP during the current fiscal year, compared to 4.6 percent during the previous fiscal year.
Interestingly, the current account deficit has come down significantly, but despite this, the IMF has predicted an increase in the deficit during the current and next financial year.