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Inflation likely to be 25.9% in Pakistan: IMF
Pakistan has been directed to tighten the monetary policy to reduce the financial deficit.
Washington DC: According to International Monetary Fund (IMF), the inflation rate in Pakistan is likely to be 25.9 percent this fiscal year.
According to IMF, Pakistan's economic growth rate may be 2.5%, unemployment rate may decrease to 08% in fiscal year 2024.
The IMF told that import restrictions will be lifted by the end of the program. Pakistan's fiscal deficit is likely to be 7.5 percent of the economy.
According to the IMF, the implementation of Pakistan's program will be monitored. The government will not take a new loan from State Bank of Pakistan (SBP).
The petroleum levy is likely to exceed one thousand billion rupees next year, and Pakistan is likely to receive multilateral and bilateral loans of 12 billion dollars until December 2023, IMF told.
Pakistan has been directed to tighten the monetary policy to reduce the financial deficit, therefore the provinces will have to give surplus budget.
Details of Pakistan-IMF agreement
It is pertinent to note that IMF has released the details of the agreement with Pakistan.
According to the details, Pakistan has assured the IMF to reduce the subsidy on energy and increase the revenue besides lifting the ban on imports.
Pakistan has also promised IMF to reduce salary and pension costs and increase funding for the Benazir Income Support Program.
It has been assured by Pakistan that monitoring report of government institutions will be issued including the quarterly report of national accounts.