The International Monetary Fund (IMF) has warned that Pakistan’s growth rate will remain at 1.5 per cent this year, while inflation and unemployment will rise.
In its latest report on the Pakistani economy, the IMF said the prospects for recovery were slim this fiscal year.
According to the International Monetary Fund, the economy will grow at 1.5 per cent. Earlier, the World Bank had also forecast 1.3 per cent growth for the current financial year.
Prime Minister Imran Khan last week removed Finance Minister Abdul Hafeez Sheikh and replaced him with Hamad Azhar.
The new finance minister said in a statement this week that he hoped the economy would improve beyond expectations and reach 4% by next year.
He said that the government is going to take concrete steps to increase tax revenue for this.
He said that tax evaders would be caught and the government would try to achieve its tax targets.
The current government is set to present its third national budget in June. However, before the start of Ramadan in April, people are most worried about inflation.
According to the IMF, inflation will remain at 8.7 per cent this year, while unemployment is expected to rise to 1.5 per cent.
Addressing the launch of a UN report in Islamabad on Tuesday (April 6th), Pakistani Prime Minister Imran Khan said his government had taken significant steps to minimize Coronavirus’ economic impact on the general population. He specifically mentioned the “Ehsaas Program”, under which the government provides assistance to the poor and needy.
However, he acknowledged that the government was facing difficulties ahead of the third wave of the pandemic.
He said the government would have to talk to the IMF again to address these challenges. “Strict conditions cannot be imposed on people at a time when they are already in dire straits,” he said.