Pakistan’s economy may grow by 1%, inflation may cross above 10%. Unemployment going to increase by the end of this fiscal year. Facts speculated in the World Economic Outlook (WEO) report that the International Monetary Fund (IMF) published on Tuesday.
The WEO report 2020 this year is titled “a long and difficult ascent”. Which described the adverse effects of the Great Lock down.
Pakistan’s economy, in the last fiscal year contracted by 0.4%. Now projected to grow by 1% in this fiscal year 2020-21.
The 1% growth rate is less than half of the official target of 2.1%.
The IMF estimated over 13.3% increase in unemployment in Pakistan within a year.
The IMF report suggest that Pakistan is in stagflation situation – “a condition in which the economic growth rate is slow while unemployment and prices of goods and services are high.”
Prime Minister Imran Khan is concerned about increasing food prices and has taken action of not controlling the rates.
There is double-digit food inflation in Pakistan due to shortage of essential food items.