(IMF) Has Expressed Concern Over Pakistan’s Growing Inflation and Expanding Current Account Deficit
April 20, 2022 / By Zunair Tahir / Business News
ISLAMABAD, Pakistan – Pakistan’s surging inflation and expanding current account deficit have alarmed the International Monetary Fund (IMF).
According to a recent assessment by the Washington-based banking organization, the South Asian country’s productivity is on the decline.
Inflation is expected to stay around 11.2 percent this year, with the current account deficit hovering at 3.5 percent of GDP.
According to the estimate, economic growth will be about 4% this year, while unemployment will be around 7% this year and 6.7 percent next year.
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Meanwhile, in the aftermath of the crisis in Ukraine, the UN has cut its global growth estimates, warning that a Kremlin invasion may break the global economy into opposing blocs.
It noted that prospects had deteriorated in the previous three months, as it decreased its growth forecast for 2022 from 4.4 percent to 3.6 percent. The news comes as Islamabad has formally begun discussions with the IMF on the bailout package in Washington. According to sources, negotiations with the US-based financial institution will last until April 24, and the IMF will disburse a $1 billion tranche following successful talks.
Governor of the State Bank of Pakistan, Reza Baqar, is now in the United States for discussions with IMF officials. He will also be present at the World Bank’s steering committee meeting. Miftah Ismail, the Prime Minister’s Finance Adviser, will participate in the IMF negotiations electronically.