The International Monetary Fund (IMF) on Tuesday forecast a subdued economic growth rate for Pakistan coupled with elevated rate of inflation and rising unemployment during the current fiscal year.

In its World Economic Outlook (WEO) 2020, the IMF projected Pakistan’s growth rate at one per cent, average inflation rate at 8.8pc, current account deficit at 2.5pc of GDP (gross domestic product) and unemployment rising by 0.6pc to 5.1pc during the current fiscal year. This is in sharp contrast with targets of 2.1pc GDP growth rate, 6.5pc inflation and 1.5pc current account deficit set by the government.

Going forward, the Washington-based lending agency projected the economic growth rate recovering to 5pc of GDP by 2025. It said the rate of inflation would be peaking at 10.2pc at the end of FY2021. The IMF estimated current account deficit rising from 1.1pc of GDP in FY2020 to 2.5pc in FY2021 and then going up to 2.7pc in FY2025.

https://www.dawn.com/news/1584939/imf-forecasts-1pc-growth-rising-unemployment