Inflation to keep haunting Pakistanis: UN survey

The mid-year United Nations survey on the world economic situation forecast that the inflation rate in Pakistan is expected to remain in double digits in the coming months owing to weakening local currency and supply-side constraints. Domestic food inflation remains elevated due to country-specific factors, challenging food security across the South Asian region, particularly in Afghanistan, Bangladesh and Pakistan, according to the ‘World Economic Situation and Prospects as of mid-2023’, released on Tuesday by the UN Department of Social Affairs. High inflation, tighter financial conditions, weaker private consumption, and external imbalances will continue to impact growth in 2023. As the region is highly vulnerable to extreme climate conditions, potential droughts and floods also pose a significant risk to the economic outlook, the UN survey reveals. South Asia’s economy is projected to grow by 4.7 per cent in 2023 and 5.8pc in 2024, a slight downward revision of 0.1 percentage points for both years from the forecasts in January. Regional consumer price inflation is projected to average 11pc in 2023 and 9.4pc in 2024, slightly lower than the 12.9pc recorded in 2022.