The international lender cuts Pakistan’s GDP growth rate to 0.5% for FY23,

The International Monetary Fund (IMF) on Tuesday predicted more inflation and unemployment in Pakistan.

The international lender in its report, “World Economic Outlook (WEO): A rocky recovery” released on Tuesday, stated that predicted the increase in already scorching inflation and unemployment and slow economic growth in Pakistan, and shows the possibility of improvement in the economic conditions of Pakistan next year.

The Fund also stated that Pakistan’s GDP is projected to be 3.5 percent declining 0.5 percent in FY24 which stood at 6 percent in FY22, the government had set the target of economic development at 5 percent. According to the IMF, compared to last year, the rate of inflation this year is more than double, i.e. 27 percent, and the unemployment rate has been predicted to reach 7 percent.

The report stated that According to the IMF, the current account deficit will be limited to 2.3 percent of GDP. The report has said that next year GDP growth will be 3.5 percent with clear improvement and inflation will decrease to 21.9 percent.

The IMF further predicted that the current account deficit will be contained within 2.3 percent of the Gross Domestic Product (GDP). In addition, the IMF’s report forecasts a 3.5 percent growth in GDP for the coming year, indicating significant progress. Furthermore, the report suggests that inflation will reduce to 21.9 percent, indicating a positive trend in the economy.

“The Current Account Deficit (CAD) will remain 2.4 percent, while the unemployment ratio is expected to decline 0.2 percent,” the report said.

The global economy is gradually coming out of the negative effects of the Coronavirus epidemic and the Russia-Ukraine war.

Pakistani rupee continues losing streak against US dollar,

The Pakistani rupee kept up its losing streak and shed 66 paisas in its value against the US dollar in the interbank trading on Tuesday,

According to money dealers, the local unit stumbled against the US dollar which was up by 66 notches and traded at Rs287.75 during early trade today.

Yesterday, the US dollar smashed Pakistani rupee and appreciated by Rs2.44 in the interbank trading. According to economic experts, the political uncertainty along with the stalled IMF tranche is eroding the market trust in rupee.

Despite completing almost all prior actions demanded by the International Monetary Fund, Pakistan is still awaiting the revival of the IMF programme which will also unlock assistance from the friendly countries.

The rupee started to decline after Finance Minister Ishaq Dar announced that he would not attend spring meetings of the IMF and the World Bank being held in the US.

Since January 2023, the rupee slid by Rs56. Since April 2022, the PKR has lost Rs105 against the US dollar.

The money experts are of the view that if the IMF released $1.2 billion tranche, it still will not turn around the country’s tattered economic condition. They call for a concrete policy shift, well-formulated fiscal developments for shoring up dwindling forex reserves and reigniting trade with partner nations.

 

Gold, silver prices break all records with another increase,

The prices of gold and silver in Pakistan Tuesday reached a new all-time high as the record-breaking spree of the precious metals continue in Pakistan with the depreciation of the Pakistan rupee,

According to the All Sindh Jewelers Association, the one tola price of 24-Karat gold reached Rs218300 after seeing an increase of Rs600 per tola.

Similarly, the price of 10 grams of 24-Karat gold reached Rs187157 after seeing an increase of Rs514 per 10 grams.

The price of 10-gram gold of 22-karat reached RS171561.

In the international market, the price of one ounce of gold was decreased by one dollar and was being traded for $2001.

Silver prices:

Like gold, silver prices in Pakistan have also reached all-time high.

According to the All Sindh Jewelers Association, the one tola price of 24-Karat silver reached Rs2520 after seeing an increase of Rs40 per tola.

Similarly, the price of 10 grams of 24-Karat silver reached Rs2160.50 after seeing an increase of Rs34.30 per 10 grams.