The International Monetary Fund (IMF) has projected Pakistan’s economic growth rate for the current fiscal year to be 3.6 per cent, falling short of the government’s target of 4.2 per cent.
According to the latest World Economic Outlook report, Pakistan’s economy is expected to grow faster than the previous fiscal year, when growth stood at 2.7 per cent.
The IMF also expected inflation to reach 6 per cent this year, higher than last year’s 4.5 per cent but below the government’s target of 7.5 per cent. The report estimates that unemployment will decline to 7.5 per cent, compared with 8 per cent in the previous fiscal year.
The current account deficit is projected to remain at 0.4 per cent of GDP. The government has set a target of 0.5 per cent or $2.1 billion. Last year, the current account recorded a surplus of 0.5 per cent.
The IMF report also highlighted continuing uncertainty in global trade and geopolitics.
