Pakistan’s growth rate to remain 2pc during current fiscal year: IMF

The International Monetary Fund (IMF) has said that the economic growth rate of Pakistan was predicted to remain 2 percent during the current fiscal year while during the next fiscal year, the rate was expected to touch 3.5 percent, reported 24NewsHD TV channel.

The IMF released its report on Pakistan's economy as its support team landed in Islamabad to discuss a new loan programme ahead of the country's annual budget for the next financial year. While the IMF mission will arrive on May 16.

The report said the average inflation in Pakistan was expected to remain at 24.8 percent this fiscal year while the growth rate in Pakistan remained negative 0.2 percent last fiscal year.

The average inflation in Pakistan was likely to remain at 12.7 in the next financial year, while the average inflation during the last fiscal year was 29.2 percent, reports said.

IMF said the unemployment rate in Pakistan may remain at 8 percent during the current fiscal year while the unemployment rate will decrease to 7.5 percent in the next financial year. During the last year, the unemployment rate stood at 8.5 percent.

IMF report further said the country’s current account deficit was likely to remain at 1.1 percent of GDP this fiscal year while the deficit will increase to 1.2 percent of GDP in the next financial year.

IMF mission has arrived in Pakistan to discuss a new programme ahead of the country's annual budget for the next financial year. A support team of the global lender will discuss the first phase of the next long-term loan programme with Pakistan's financial team.

The sources further said that the advance party of the IMF has reached Pakistan to hold discussions on the longer and larger size of the bailout package. The team will receive data from different departments and will also discuss the upcoming FY2025 budget with the Ministry of Finance officials. The sources also revealed that the team will stay in Pakistan for more than 10 days.

Pakistan has requested another bailout package of $6 8 billion for the three years period under the Extended Fund Facility (EFF).

The mission will discuss the FY25 budget, policies, and reforms under a potential new programme for the welfare of all Pakistanis.

"Accelerating reforms now is more important than the size of the program, which will be guided by the package of reform and balance of payments needs," the IMF statement said.

Earlier, Finance Minister Muhammad Aurangzeb, while speaking to the media, said that Pakistan hopes to agree on the contours of a new IMF loan in May.

Reporter: Waqas Azeem