IMF predicts acceleration in Pakistan's economic growth

Washington: The International Monetary Fund (IMF) has predicted the acceleration of Pakistan's economic development and reduction in inflation and unemployment.

After the approval of a new loan of $7 billion, the IMF has issued a report on the Pakistani economy, in which it is said that the pace of economic growth may increase to 3.2 percent in the current fiscal year, while the economic growth in Pakistan last fiscal year was 2.4 percent.

According to the IMF report, the average inflation rate in Pakistan is likely to decrease from 23.4 to 9.5 percent, while unemployment in Pakistan is estimated to decrease from 8 percent to 7.5 percent.

The report said that Pakistan's budget deficit could come down to 6.1 percent from 6.8 percent, but the rate of debt owed by the government, including the IMF, is likely to increase, with debt to GDP rising from 69.2 percent to 71.4 percent, while the current fiscal year raw foreign exchange reserves may increase to $12.75 billion.

In an article written in an English newspaper, IMF Mission Chief Nathan Porter said that last year there was a welcome return to economic stability in Pakistan and growth has resumed.

He stated that inflation has fallen dramatically, the exchange rate has remained stable, and foreign reserves have more than doubled.

The IMF mission wrote that the pace of change is remarkable given the extreme external pressures and uncertainties facing Pakistan in mid-2023.

Nathan Porter further wrote that progress towards sustainable and robust development is still a challenge for Pakistan as every step taken in the past has left Pakistan more vulnerable and indebted.