IMF predicts Pakistan’s GDP to grow 4pc in FY22

ISLAMABAD: The International Monetary Fund (IMF) predicts Pakistan’s GDP to grow by 4pc in fiscal year 2021-22.

The International Monetary Fund (IMF) on Tuesday predicted in its report the inadequate growth rate of four per cent for Pakistan. Earlier, the World Bank also presented the in its recent report which projected 3.4% GDP growth for the year 2021-22 which was rejected by the government considering it as unrealistic.

Moreover, according to World Bank Pakistan is coupled with increasing rate of inflation and unemployment which would also decline from the current 5.0% to 4.8% in the current fiscal year. The report further suggest that country’s inflation rate would ease from 8.9% during the year 2020-21 to 8.5% by end of the current fiscal year 2021-22.

Read also: Pakistan rejects WB’s projection about GDP

Though, the fund expected the consumer price index to slowly come down to 6.5pc by FY2026. It further estimates current account deficit would rise from 0.6pc of GDP in FY2021 to 3.1pc next year and then reduce to 2.8pc by FY2026. IMF said in the report “This modest headline revision, however, masks large downgrades for some countries.” The report further mentions “The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics. The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions.”

However, the report also elaborates the consequences of the great vaccine divide and large disparities in policy support. Where 96pc of the population in low-income countries remain unvaccinated while the population in advanced countries is 60 percent vaccinated.

The IMF also called upon the international community to resolve the trade tension, it further has advised the member countries to deal with the challenges of the post-pandemic economy effectively.