IMF paints bleak picture of Pakistan economic growth in FY 2023

IMF paints bleak picture of Pakistan economic growth in FY 2023

ISLAMABAD – The International Monetary Fund has forecast Pakistan’s economic growth to lessen further to 2 percent during the current year, down to the previous estimate of 3.5 percent, in wake of the massive floods and slowdown in global growth rate.

According to the World Economic Outlook (WEO) report issued by the global lender, the GDP growth rate of the cash-strapped country would rebound in the next FY above 4 percent.

IMF project report comes as the fund’s mission is in Pakistan for talks about the revival of stalled loan programme.

The report forecasts a dip in global growth from an estimated 3.4pc in 2022 to 2.9pc in 2023, suggesting it will rise to 3.1pc in 2024. It mentioned the rapid spread of Covid in China which affected growth across the globe and further mentioned global inflation to fall from 8.8pc in 2022 to 6.6pc in 2023 and 4.3pc in 2024.

Last month, World Bank also downgraded the outlook for Pakistan’s economic growth by half for the current fiscal year in wake of the dilapidating economy.

WB's latest forecast suggests the real Gross Domestic Product (GDP) of cash strapped country is likely to grow at 2.0 percent in FY23 as global growth is also expected to slow amid soaring inflation, rising interest rates, and the Russia-Ukraine war.