ISLAMABAD – International Monetary Fund slashed Pakistan’s global growth forecasts from projections it made in October 2022 as it warned of more inflation and unemployment in the crisis-hit country.
The global lender downgraded its forecasts for Pakistan for the current fiscal year to 0.5 percent, with inflation likely to surpass 27 percent and the inflation rate soaring to 7 percent.
In its report World Economic Outlook (WEO): A rocky recovery, hinted at the improvement in the economic conditions of South Asian country next year but warned of hard times in near future.
Pakistani government earlier set the target of economic development at 5 percent while the rate of inflation is more than doubled this year. The reports claimed that Current Account Deficit (CAD) will remain at 2.4 percent.
The gloomy growth forecasts come in wake of the aftermath of catastrophic floods and the slowdown in the global economy.
The recent down gradation of the country’s growth prospects comes weeks after World Bank and the Asian Development Bank projected inflation at 29.5pc and 27.5pc amid deepening political and economic crises.
Globally, the inflation is set to take from 8.7 percent to 7percent this year in wake of the slight drop in prices, but core inflation is likely to drop gradually, the fund said.