ISLAMABAD: International Monetary Fund (IMF) has predicted that Pakistan’s economy would perform better in current and next fiscal years despite macroeconomic challenges.

World Economic Outlook of IMF for October forecasts growth of 2.5 percent for country’s economy in ongoing fiscal year and it would reach to 5 percent in next fiscal year. It is significant increase compared to 0.5 percent contraction witnessed in last fiscal year.

It also shows that Fund also expected quicker economic recovery than it had earlier forecast at 5 percent GDP growth rate in fiscal year 2026-27.

World Bank had earlier predicted Pakistan’s growth rate at 1.7 percent for ongoing fiscal year and 2.4 percent in next year. Earlier, IMF had estimated inflation at 27 percent for fiscal year 2023 but later revised it to 29.2 percent.

Fund had revised inflation projection to an average 23.5 percent from 22 percent for ongoing fiscal year. However, it noted that year-end inflation could drop to as low as 17.5 percent.

Fund also estimated unemployment rate to have risen to 8.5 percent in fiscal year 2023 from 6.2 percent in 2022. For current fiscal year, unemployment rate has also been projected at 8 percent.

ADB had projected Pakistan’s GDP growth rate at 1.9 percent and inflation at 25 percent for current fiscal year last month.

Published in The Daily National Courier, October, 12 2023

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