Says unemployment will rise to 6.2% in 2020
The International Monetary Fund (IMF) has predicted that Pakistan’s GDP growth rate will be reduced to 2.9 % while inflation and unemployment will go up.
The projection that IMF has made is more alarming than the estimates of the World Bank and Asian Development Bank in their recent reports. The World Bank projected 3.4 % while ADB estimated 3.9 % GDP growth rate for Pakistan in the current fiscal year ending June 30.
Pakistan’s GDP growth remained 5.2 % during fiscal year 2018 which will slow down to 2.9 % at the end of current fiscal year, claimed the IMF in its latest ‘World Economic Outlook 2019’ report released on Tuesday.
In the coming fiscal year, the projected GDP growth is likely to remain at 2.8 %, almost the lowest in a decade. Inflation will jump to 7.6 % against the 6% target set in the budget 2018-19, it added.
The IMF has estimated that due to an economic slow down, unemployment in Pakistan will rise to 6.2% in the next fiscal year from the current 6.1%.
The current account deficit is likely to go down to 4.3% in 2020 from the projected 5.2% during the on-going fiscal year, it added.
According to the IMF, convergence prospects are bleak for some emerging markets and developing economies.
The IMF has released the report at a time when Pakistan is negotiating a fresh bailout package due to its balance of payments crisis.
Finance Minister Asad Umar is off to Washington to finalise the agreement which is likely to be signed at the end of this month when an IMF staff mission is expected to visit Pakistan.