KARACHI – The International Monetary Fund (IMF) Tuesday projected realGross Domestic Product (GDP) to grow by 4.0 percent in the current fiscalyear (2021-22) while the current account deficit was projected at 3.1% ofthe GDP or over $10 billion.
In its World Economic Outlook (WEO) October 2021 report, the US-basedlender endorsed Pakistan’s provisional figures of GDP growth rate of 3.9%during the previous fiscal year 2020-21.
However, the World Banklink,a sister organization of the United Nations (UN) specialized agency, in itsrecent report last week projected 3.4 percent GDP growth for the year2021-22. The ministry of finance rejected the statement saying the forecastwas based on an ‘unrealistic’ assessment and that the GDP growth rate forthe current fiscal year would rise around 5 percent.
Meanwhile, the WEO report mentioned a drop in the unemployment rate inPakistan. It also stated that the inflation rate would ease from 8.9percent during the year 2020-21 to 8.5 percent by end of FY22.
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“Looking ahead, headline inflation is projected to peak in the final monthsof 2021 but is expected to return to pre-pandemic levels by mid-2022 formost economies,” the report cited adding that given the recovery’suncharted nature, considerable uncertainty remains, and inflation couldexceed forecasts for a variety of reasons.
IMF issued the report a day before Finance Minister Shaukat Tarin isscheduled to meet the fund’s management in the US capital. The Ministerwill reportedly discuss concessions against harsh conditions put forth bythe IMF staff.
