Tuesday, June 18, 2024

IMF Predicts More Inflation & Unemployment in Pakistan

IMF has predicted that Pakistan will likely experience more inflation and unemployment shortly. The global organization has stated that the country’s economy is still vulnerable to external shocks and that several factors could negatively impact its economic growth.

According to the IMF’s latest report, Pakistan’s inflation rate is expected to rise to 8.7% in 2022 from the current rate of 8.4%. This is due to rising global oil prices and food inflation, likely increasing the cost of goods and services.

In addition, the country’s unemployment rate is also predicted to rise from 5.8% in 2021 to 6.1% in 2022. The IMF report also highlights the challenges faced by Pakistan’s government in managing the country’s economy.

The organization has advised the government to implement structural reforms and take measures to increase revenue collection and reduce expenditures. The IMF has also emphasised Pakistan’s need to resolve its current account deficit, which is anticipated to grow to 2.3% of GDP in 2022.

Pakistan’s government has acknowledged the challenges highlighted in the IMF report and has stated that it is working on implementing measures to address them. The country’s finance minister, Shaukat Tarin, has noted that the government is increasing revenue collection and reducing expenditures.

He has also emphasized the need for Pakistan to focus on exports to reduce the current account deficit. Despite the challenges highlighted in the IMF report, Pakistan’s economy has improved recently.

The country’s GDP growth rate increased to 4% in the fiscal year 2021, up from -0.4% in the previous year. In addition, Pakistan’s stock market has performed well, with the benchmark KSE-100 index reaching record highs in March 2022.

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