High food and petrol prices can trigger protests in Pakistan, warns IMF
“High food and petrol prices could prompt social protest and instability,” the International Monetary Fund (IMF) said, in an executive summary of the seventh and eighth reviews, released under the Extended Fund Facility (EFF).
The IMF has released the report on the seventh and eighth reviews of Pakistan’s economy and debt.
Pakistan’s inflation measured by the consumer price index (CPI) has hit a 47-year high, accelerating to 27.3% in August 2022, the level last seen in May 1975. The full impact of massive flooding on the prices of food items and other commodities is yet to come.
The IMF report pointed out the non-implementation of several promises and targets by the PTI government.
The report said that the PTI government did not meet 5 targets including foreign exchange reserves and primary budget deficit, 3 performances and 7 structural conditions were also not met.
According to the report, Pakistan’s economic growth rate this year is expected to be 3.5 percent, while the budget deficit is expected to be 4.4 percent of GDP, in addition, the current account deficit may be up to 2.5 percent.
