IMF Projects Decrease in Unemployment and Inflation in Pakistan

In a new forecast, the International Monetary Fund (IMF) has projected improvements in Pakistan’s economy, predicting a decrease in unemployment and inflation rates. The IMF anticipates that Pakistan’s unemployment rate will fall from 8% to 7.5% in the coming fiscal year, while inflation is expected to drop significantly from 23.4% to 9.5%. Additionally, the country’s economic growth is forecasted to rise to 3.2%, up from 2.4% in the previous fiscal year.

The IMF’s report, following its recent agreement with Pakistan, also projects an increase in tax revenue, with expectations for it to rise to 15.4% of the economy, compared to 12.6% last year. However, the public debt is likely to increase slightly from 67% to 69% of the economy.

The IMF stressed the importance of continuing reforms in Pakistan, particularly in areas such as the energy sector and tax system. The report highlighted the need for fair taxation, encouraging the inclusion of all sectors under the tax framework, and emphasized the importance of strict implementation of anti-money laundering measures.

Additionally, the IMF urged Pakistan’s government to curb losses in state-owned enterprises, improve governance, and tackle corruption in public institutions. Reforms in the energy sector were underscored as crucial for reducing electricity costs and adjusting energy prices more efficiently.

Environmental challenges, productivity improvements, and creating equal opportunities for business were also identified as critical issues to address. The IMF concluded that sustained efforts are essential to ensure long-term stability and economic growth in Pakistan.