Pakistan’s economy to grow by 4 pct by 2021-22: IMF

ISLAMABAD: The International Monetary Fund (IMF) has predicted Pakistan’s Gross Domestic Product (GDP) to grow by 4.0 percent by next fiscal year (2021-22).

In its annual report ‘World Economic Outlook 2021’, the IMF has forecast 1.5 GDP growth for Pakistan during the current fiscal year 2020-21.

This however, is in contrast to the revised growth forecast of 3.0 percent for current fiscal year by the State Bank of Pakistan (SBP). The actual growth rate target set by the federal government for the corresponding year is 2.1 percent.

Minister for Finance Hammad Azhar also reaffirmed the government’s resolve to have higher GDP growth than the target set for the current fiscal year.

 “Pakistan’s economy this year will grow at a faster rate than earlier forecasts. Starting from next fiscal year, we will be targeting an even higher growth rate that may exceed 4% per annum. This growth will not be based on deficits or depleting reserves but will be sustainable,” he had said in a tweet on Apr 6.

The IMF has also forecast the country’s inflation rate to gradually subside to 8.0 percent by next fiscal year from 8.7 percent in the year 2020-21.

While, according the the IMF report the Current Account Deficit will remain 1.5 percent during current  fiscal year while it will edge up to 1.8 percent by next year.

The unemployment rate will remain 5.0 percent during current fiscal year and it will come down to 4.8 percent by next year.