IMF Projects Ambiguous Outlook of Pakistan’s Economy

International Monetary Fund (IMF) sounded the alarm for Pakistan’s economic condition with swelling unemployment and projected GDP growth rate at 1.5% for 2021.

In contrast, Federal Finance Minister Hammad Azhar shared a brighter side on social media.

IMF, in its annual World Economic Outlook (WEO) report, stated Pakistan’s GDP growth to stay at 1.5% in 2021 against -0.4% in the previous year.

Meanwhile, for 2022, the report projected growth at 4%.

It also projected an 8.7% average rate of inflation and unemployment rising by 0.5% to 5% during the current fiscal year.

The current account balance in the report is estimated at -1.5% of the GDP for 2021 against -1.1% in 2020 and -1.8% is projected for 2022.

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The report also highlighted concerns about the impact on economy due to covid-19.

It maintained that the low-income developing states have been hit harder by the global pandemic and predicted that the sufferings may continue.

However, Federal Finance Minister Hammad Azhar took to Twitter yesterday and shared some encouraging information for the nation.

“This year we are seeing a healthy growth in revenues & are confident of achieving our targets”, the post read.

Pakistan’s economy will this year 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

— Hammad Azhar (@Hammad_Azhar) April 6, 2021

He maintained in the post that the country’s economy will grow at a faster rate this year.

“Starting from next fiscal year, we will be targeting an even higher growth rate that may exceed 4% per annum”, he wrote.

The federal minister further announced that the growth will not be based on deficits or depleting reserves but will be sustainable.