In contrast to the World Bank’s projections, the International Monetary Fund (IMF) has offered a more optimistic outlook for Pakistan’s economy, as per the newly released World Economic Outlook Report 2024.
Islamabad: IMF predicts decrease in Pakistan’s inflation and unemployment. The report forecasts a significant improvement in key economic indicators such as inflation, unemployment, and economic growth.
According to the IMF, Pakistan’s economic growth rate is expected to rise to 3.5 percent next year, showing a positive trajectory from the projected 2 percent growth rate for the current year.
The report anticipates a notable decline in inflation and unemployment figures, with inflation forecasted to decrease to 24.8 percent this year and further drop to 12.7 percent next year.
Furthermore, the report suggests a decline in unemployment rates, with an estimated rate of 8 percent for the current year, expected to decrease to 7.5 percent next year.
Read More: Pakistan Initiates Talks with IMF for Multi-Billion Dollar Economic Support: Aurangzeb
These promising projections by the IMF indicate a positive momentum for Pakistan’s economy, signaling potential improvements in the country’s financial landscape in the coming years.
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 190 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of last resort to national governments, and a leading supporter of exchange-rate stability. Its stated mission is “working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” Established in July 1944 at the Bretton Woods Conference, primarily according to the ideas of Harry Dexter White and John Maynard Keynes, it started with 29 member countries and the goal of reconstructing the international monetary system after World War II. It now plays a central role in the management of balance of payments difficulties and international financial crises. Through a quota system, countries contribute funds to a pool from which countries can borrow if they experience balance of payments problems. As of 2016, the fund had SDR 477 billion (about US$667 billion).
