IMF sees further uptick in Pakistan’s inflation

The International Monetary Fund (IMF) has kept Pakistan’s economic growth forecast unchanged at 2% but increased the inflation projection to nearly 25% for this fiscal year. This adjustment comes as the country undergoes another round of increases in utility and fuel prices. In its World Economic Outlook report released on the sidelines of the spring meetings, the global lender also revised the current account deficit downward to 1.1% of gross domestic product (GDP) or below $4 billion. The projection is still about $1.5 billion higher than Pakistan’s estimates. The IMF has also upward revised the inflation forecast for the next fiscal year 2024-25 but did not change the economic growth projection. The IMF report showed that during the current fiscal year, Pakistan’s economy may grow at a rate of 2%, a forecast that is consistent with the IMF’s first review report under the $3 billion standby arrangement. The forecast is also in line with the projections made by the World Bank and the Asian Development Bank that showed estimates little below 2%.