IMF Sees Pak GDP Growth To Decline From 6 To 3.5pc.

ISLAMABAD -- The International Monetary Fund (IMF) has projected Pakistan's inflation rate at around 20 percent during the current fiscal year

The IMF has estimated that Pakistan's GDP growth would decline to 3.5 percent during the ongoing financial year (FY23) from 6 percent of the previous year (FY22).

Meanwhile, the unemployment rate would also record decline and projected to drop to 6 percent in FY23 from 6.2 percent in FY22. However, the inflation is projected to increase at higher side, 19.9 percent in the FY23, which was 12.1 percent in the last fiscal year.

The IMF has shared the details after completing the combined seventh and eighth reviews under the Extended Fund Facility (EFF) for Pakistan, allowing the authorities to draw the equivalent of SDR 894 million (about US$1.1 billion). In order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board approved an extension of the EFF until end-June 2023, rephasing and augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$6.5 billion.

According to the IMF, Pakistan's budget deficit is projected at 4.7 percent in FY23 from 7 percent in the FY22. Revenues and grants would remain at 12.4 percent of the GDP as against expenditures of 17.1 percent of the GDP. The government has assured the Fund to record primary budget surplus of 0.2 percent of the GDP during the current financial year.

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