IMF forecasts better economic performance in current FY
Business
Fund expects a growth of 2.5pc for Pakistan’s economy in the ongoing fiscal year
ISLAMABAD (Web Desk) - The International Monetary Fund (IMF) has predicted that Pakistan’s economy would perform better in the current and next fiscal years despite the macroeconomic challenges.
The World Economic Outlook of IMF for October forecasts a growth of 2.5 per cent for the country’s economy in the ongoing fiscal year and it would reach to 5pc in the next fiscal year.
It is a significant increase compared to the 0.5pc contraction witnessed in last fiscal year.
It also shows that the Fund also expected quicker economic recovery than it had earlier forecast at 5pc GDP growth rate in the fiscal year 2026-27.
The World Bank had earlier predicted Pakistan’s growth rate at 1.7pc for the ongoing fiscal year and 2.4pc in the next year.
Earlier, the IMF had estimated inflation at 27pc for fiscal year 2023 but later revised it to 29.2pc.
The Fund had revised the inflation projection to an average 23.5pc from 22pc for the ongoing fiscal year. However, it noted that year-end inflation could drop to as low as 17.5pc.
The Fund also estimated the unemployment rate to have risen to 8.5pc in fiscal year 2023 from 6.2pc in 2022.
For the current fiscal year, the unemployment rate has also been projected at 8pc.
The ADB had projected Pakistan’s GDP growth rate at 1.9pc and inflation at 25pc for the current fiscal year last month.
