ISLAMABAD – International Monetary Fund (IMF) has projected Pakistan’s GDPgrowth rate at 3.5 percent and inflation at around 20 percent aspost-pandemic aftershocks, and the Russia-Ukraine war impact hit thecash-strapped country.

In the World Economic Outlook 2023, the US-based lender forecast Pakistan’sGDP growth with a disclaimer that the 2022 projections are based oninformation available as of the end of August and do not include the impactof the recent floods.

The current account balance is projected at negative 2.5 percent for 2023compared to negative 4.6 percent for 2022. It also projected a rise inunemployment in South Asian nation to 6.4 percent in 2023 compared to 6.2percent in 2022.

IMF revealed that inflation was the highest in recent times across theglobe as most regions opted for stern measures. The reports said that thiswas the weakest growth profile forecasted in the last 2 decades, except theacute phase of the Covid-19 pandemic.

It also warned that aggressive monetary tightening would be critical toavoid inflation de-anchoring as a result of households and businessesbasing their wage and price expectations on their recent inflationexperience.