Karachi: The International Monetary Fund (IMF) has predicted that inflation in Pakistan will increase to 9.9% in the current fiscal year, while the economic growth rate is likely to remain at 3.5%.
According to the organisation’s estimates, Pakistan’s economy grew by 3.6% in the last fiscal year. This time, along with a slightly slower growth rate, the fear of price increases will also be a major challenge for economic policymakers.
Rising inflation could put pressure on household spending and business costs. In particular, rapid changes in energy and food prices could affect the purchasing power of ordinary consumers.
Global conditions may also affect Pakistan’s economic prospects. Rising oil prices due to tensions in the Middle East could increase the costs of energy-importing countries. In this situation, it will be important for Pakistan to keep import bills and external payments under control.
The IMF has estimated that Pakistan’s current account deficit will be equal to one percent of gross domestic product. The report also predicts that the unemployment rate will be 6.5 percent, which is lower than the 6.9 percent in the previous fiscal year.
For economic stability, it will be necessary to increase investment, exports and employment opportunities along with controlling prices. The benefits of sustainable development will reach the common citizens only when income and purchasing power improve.
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