Inflation will reduce and reach 15% by the end of fiscal year
Aug 30,2022- The IMF has forecast inflation to average 19.9 percent this year, with inflation expected to reach 15 percent by the end of the fiscal year.
The International Monetary Fund (IMF) has approved an installment of one $ billion 10 million for Pakistan.
According to the declaration, the extension of the loan program has been approved till June 2023, the loan program for Pakistan has been increased from 6 billion dollars to 6 and a half billion dollars.
The IMF has predicted the economic growth rate of Pakistan to be 3.5 percent in the current financial year and has shown the possibility of a decrease in the unemployment rate.
According to the declaration, the government expenditure during the current fiscal year may be 17.1 percent of the GDP, by the end of the current fiscal year, Pakistan’s foreign exchange reserves may reach 16 billion 22 crores.
While the world body says implementation of the recently approved budget should be a priority, the IMF has insisted on continuing to implement a market-based exchange rate policy.
According to the declaration, Pakistan’s economy is facing challenges, Pakistan has to reduce energy losses and increase tax revenue. Pakistan needs to improve social sector protection and efficiency of state-owned enterprises.
Two weeks back, The federal government is taking new tax measure to collect Rs 80 billion which are being termed as mini budget. under this move to lift a ban on the import of “non-essential luxury items”, practically it will be a mini-budget, and consequently imported phones, vehicles, home appliances, electricity and cigarettes will become expensive in the country.
One month back, the Pakistan Army Chief has approached Washington to request help in ensuring early disbursement of the loan from the International Monetary Fund (IMF).
According to a media reports, Nikkei Asia wrote that ‘dwindling foreign reserves’ have created chaos in Islamabad to avoid default.
The report added that General Qamar Javed Bajwa’s phone call to the US Deputy Secretary of State Wendy Sherman was part of Pakistan’s efforts to avoid default.
An International Monetary Fund (IMF) mission led by Nathan Porter held both in-person and virtual discussions in Doha, Qatar with the Pakistani authorities during May 18-25 this year on policies to secure macroeconomic stability and support sustainable growth in Pakistan.
Alhamdolillah the IMF Board has approved the revival of our EFF program. We should now be getting the 7th & 8th tranche of $1.17 billion. I want to thank the Prime Minister @CMShehbaz for taking so many tough decisions and saving Pakistan from default. I congratulate the nation.
— Miftah Ismail (@MiftahIsmail) August 29, 2022
Three months ago International Monetary Fund (IMF) mission led by Nathan Porter held both in-person and virtual discussions in Doha, Qatar with the Pakistani authorities during May 18-25 on policies to secure macroeconomic stability and support sustainable growth in Pakistan