The State Bank of Pakistan (SBP) on Monday released its annual report on the country’s economic status for the year 2022-2023.
According to the report, the infusion of $3 billion from the IMF has sparked signs of improvement in the domestic economy. However, the report predicts that the economic growth rate for the current fiscal year may fall short of the target, with an average inflation rate expected to range from twenty to twenty percent.
As outlined in the report, the economic growth rate is projected to be around two to three percent for the current financial year. There are positive trends in terms of improving imports and the foreign exchange situation. Moreover, expectations are that manufacturing and domestic exports will witness growth.
The agricultural sector is set to benefit from better cotton and rice production, leading to overall agricultural development. The current account deficit is anticipated to reach up to 1.5 percent of the GDP.
The State Bank notes that the domestic economy faced numerous challenges in the previous financial year. Issues such as floods, delays in the IMF's ninth review, and uncertain conditions took their toll on the economy. In fact, the GDP rate hit its third-lowest level in years.
Inflation soared to significant levels, impacting many households. The State Bank has expressed concerns about the insufficiency of resources for development costs and has also highlighted losses incurred by government agencies.