The International Monetary Fund (IMF) on Tuesday forecast a subdued economic growth rate of 1.5 percent for Pakistan, coupled with a higher rate of inflation and rising unemployment, during the current fiscal year.
The 1.5pc growth projection by the IMF is in stark contrast with the revised 3pc GDP growth forecast made by the State Bank of Pakistan a few days ago. The IMF estimates are in line with those of the World Bank, which has projected growth at 1.3pc for the current year.
In its World Economic Outlook (WEO) 2021 report, the Washington-based lending agency has projected an 8.7pc average rate of inflation, current account deficit at 1.5pc of GDP and unemployment rising by 0.5pc to 5pc during the current fiscal year. This is in sharp contrast with targets set by the government for the current year at 2.1pc for GDP growth rate, 6.5pc rate of inflation and 1.6pc for current account deficit.