IMF cuts ‘cash-strapped’ Pakistan’s growth rate to 0.5pc for FY23

 Amid political and economic turmoil, the International Monetary Fund (IMF) has slashed Pakistan’s GDP growth rate projection from 2.5 per cent to 0.5pc for the fiscal year 2023-24.

Fifth most populated country in the world, Pakistan is expected to experience inflation more than anticipated, reported a world economic outlook report released by the global lender on Tuesday.

The report projected the inflation at 27.1pc and the current account deficit at 2.3pc of the Gross Domestic Product (GDP) for FY23. On the other hand, the unemployment rate would rise to 7pc, 0.8pc higher than that of FY2022, stated the report.

The report also indicated a downfall in inflation and an upward trend in GDP growth at 21.9pc and 3.5pc respectively in FY24. However, the next fiscal year would see the current account deficit going up to 2.4% of the GDP.

The unemployment rate has also been projected to go down to 6.8pc in FY2024.

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