ISLAMABAD – Pakistan’s economic growth is expected to increase to 2.5pc in the current fiscal year according to the International Monetary Fund, as the country secures SBA agreement and funds from friendly nations.
Growth may rise to 2.5pc, IMF said in a statement, citing an improvement in the economic performance, and projecting a positive trajectory for the South Asian nation.
In its latest assessment of a crisis-hit country, the Fund forecasts a decline in unemployment rates and a further drop in inflation for the current financial year.
Earlier, Pakistan faced a negative 0.5pc growth rate, but Sharif-led government claimed a positive growth of GDP by 0.3pc.
With heavy taxation in place in this year’s budget, Pakistan aimed for a growth rate of 3.5pc whereas the current unemployment rate could further fall. The US-based lender further predicted a positive trend in reducing the volume of debt attributed to the country, and the current debt-to-GDP ratio of 81.8pc is likely to drop to 74.9pc.
On Wednesday, the Executive Board of IMF gave nod to 9-month Stand-By Arrangement (SBA) for Pakistan for an amount of $3 billion to address domestic and external imbalances and a framework for financial support from multilateral and bilateral partners.
IMF Executive Board approves 3 billion stand-by arrangement for Pakistan
