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Reading: IMF Projects Decline in Inflation and Increase in Pakistan’s Reserves Over Four Years
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PhotoNews Pakistan > Business > IMF Projects Decline in Inflation and Increase in Pakistan’s Reserves Over Four Years
Business

IMF Projects Decline in Inflation and Increase in Pakistan’s Reserves Over Four Years

Web Desk
By Web Desk Published May 14, 2024 2 Min Read
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IMF approves $7 billion EFF programme for Pakistan. Photo Credits: News Central TV
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The International Monetary Fund (IMF) has forecasted a continuous decline in inflation and an increase in official reserves to over $20 billion in Pakistan over the next four years.

According to the IMF report, the inflation rate is expected to drop to 6.5% by the fiscal year 2028. The inflation rate will also remain at 6.5% in the fiscal year 2027, and it is projected to be 7.6% in the fiscal year 2026.

The report indicates that Pakistan’s inflation rate for the next fiscal year will be 12.7%. Additionally, continuous GDP growth is predicted over the next four years, with GDP growth expected to reach 5% by 2028.

IMF Mission Chief Nathan Porter stated that the negotiations with Pakistan would be fruitful and that the IMF would continue to support Pakistan.

During a meeting with officials from the Ministry of Finance, Nathan Porter mentioned that political instability has led to economic challenges and that economic stability is closely tied to political stability.

The IMF Mission Chief emphasized that all political parties need to work together to improve the economy. Nathan Porter also stated that ensuring the implementation of the IMF’s recommendations is crucial. He assured that the negotiations would be productive and that the IMF’s support for Pakistan would continue. The IMF Mission Chief also assured that they would work with the economic team on the upcoming fiscal year’s budget.

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