ISLAMABAD: In a major setback, the International Monetary Fund (IMF) has grouped Pakistan with six other countries experiencing significant conflicts this year, warning that these conflicts, coupled with stringent macroeconomic policies, will impact their economic performance, Express Tribune reported on Friday.
In its recent report on the Middle East and Central Asia region, the IMF revised the economic forecast for 2024 downward to 2.6%, citing ongoing conflicts, tight policy measures in certain economies, and decreased hydrocarbon production as factors hindering growth.
The report, released during the World Bank-IMF spring meetings, highlighted that besides the West Bank and Gaza, six economies in the Middle East and North Africa (MENA) region, including Pakistan, were grappling with conflicts at the outset of 2024. These countries are Iraq, Pakistan, Somalia, Sudan, Syria, and Yemen.
Being categorized alongside nations facing severe conflicts, including civil unrest, may negatively impact Pakistan’s global reputation and deter investment. This highlights a perceived mishandling of IMF affairs by the finance ministry.
According to the IMF report, a nation was deemed to be in conflict if it experienced at least 25 battle-related fatalities between January 1, 2024, and March 8, 2024, as documented by the Armed Conflict Location and Event Data Project.
The report emphasized that the economic growth prospects for the region, including Pakistan, were marked by an uneven recovery amidst ongoing armed conflicts, reliance on hydrocarbons, and persistent structural challenges.
