Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    Gen V Season 2 trailer
    Videos

    Gen V Season 2 Trailer Cast, Plot, Premiere Details

    July 26, 2025 3 Min Read
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Pakistan’s Economic Challenges: GDP growth projected to be 0.8%
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
Dropping Low Inflation Rate Pakistan
PhotoNews Pakistan > Business > Pakistan’s Economic Challenges: GDP growth projected to be 0.8%
Business

Pakistan’s Economic Challenges: GDP growth projected to be 0.8%

Web Desk
By Web Desk Published April 27, 2023 4 Min Read
Share
An image displays the flag of Pakistan with a graph illustrating a decline in the inflation rate.
SHARE

Significant debt sustainability indicators have deteriorated in the first half of the current fiscal year (from July to December), leading to governmental concerns shared on Wednesday.

The gross financing needs are expected to stay high due to elevated interest rates and stress on the foreign account. Furthermore, inflation is projected to average 28.5% this year and persist at 21% in the coming fiscal year.

On Wednesday, the Ministry of Finance’s Economic Advisory Wing presented its “Debt Sustainability Analysis (DSA) Report.” The report emphasized that the public debt situation remains precarious. The DSA’s IMF thresholds for the debt and GFN-to-GDP (gross financing needs to gross domestic product) ratios are exceeded under both baseline and shock scenarios in FY23, thus indicating a high risk.

Stress-test analysis indicated that the public debt ratio would remain above the 70% of GDP threshold until FY26 in the event of negative exchange rate shocks, the most severe scenario. Furthermore, macro-financial and standardized contingent liability disruptions could lead to a debt-to-GDP ratio exceeding 70%. As a result, the government reduced its GDP growth rate forecast from 5% to 0.8% for the first time, slightly higher than the IMF, World Bank, and Asian Development Bank’s projections of 0.4 to 0.6%.

The report acknowledges an anticipated inflation rise to an average of 28.5% in FY23 due to a volatile political and economic environment, the effects of currency depreciation, and increased energy prices, with an expected persistence at 21.5% in FY24. However, the Ministry of Finance forecasts a decrease in inflation to 6.5% over the medium term, assuming a stable exchange rate, improved agricultural outlook, political stability, and a high base effect.

Considering the global situation, the government concedes that curtailing the current inflationary pressures will take time and should not result in a recession. Nevertheless, the measures implemented should gradually lower the future inflation path to 6.5% by 2026, more aligned with steady and sustainable economic growth.

As of December 2022, the total public and publicly guaranteed debt amounted to Rs55.8 trillion – a 7% increase from the end of FY22. This surge is attributed to the heightened interest burden from the high-interest rate environment and the 11% depreciation of the Pakistani Rupee against the U.S. dollar in the first half of FY23. Domestic debt accounted for 62.8% of the total public debt, with external debt making up the remainder.

Completing the 7th and 8th reviews under the IMF Extended Fund Facility (EFF) led to a disbursement of $1.166 billion during the first half of FY23. Additionally, the government received $1 billion in a rollover from China, a $3 billion Saudi time deposit, and $3.298 billion from multilateral organizations. In contrast, $2.72 billion in international commercial loans and $1 billion in international Sukuk maturities were repaid.

Due to the Rupee’s depreciation and the primary deficit, the total public and publicly guaranteed debt to GDP ratio increased from 75.8 to 78.0% in FY22. As a result, domestic debt primarily financed the fiscal deficit.

The report stated that due to catastrophic floods, a stringent monetary stance, fiscal consolidation, and an unfavorable global economic environment, “Real GDP growth is projected to be 0.8% in FY23.” It expects the growth rate to rise to 5.5% in FY26, which requires coordinated efforts between federal and provincial governments to ensure sustainable economic development. The Economic Advisory Wing anticipates a medium-term growth between 3.5% and 5.5%, alongside price stability and fiscal and external.

TAGGED:FeaturedPakistan GDP
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Qatar permanent residency 2025

Qatar Permanent Residency 2025: Eligibility, Process, and Benefits Explained

Pakistan Arbaeen road ban

Pakistan Bans Road Travel for Arbaeen to Iraq and Iran

Ruchi Gujjar So Long Valley fraud

Actress Ruchi Gujjar Slaps Producer at So Long Valley Premiere Over

Post Archives

More Popular from Photonews

Ozzy Osbourne final Instagram post before death
Entertainment

Ozzy Osbourne’s Final Instagram Post: Haunting Farewell Before Death at 76

3 Min Read
OGRA oil supply chain digitization
Pakistan

OGRA Launches Oil Supply Chain Digitization

2 Min Read
Ozzy Osbourne cause of death 2025
EntertainmentTop News

Ozzy Osbourne Cause of Death: Rock Legend Dies at 76 After Final Show

3 Min Read
Offbeat

Fact-Check Debunks Imran Khan Sons’ Capital Hill Club Dining Rumors

On July 24, 2025, a forged document titled "Catering Guidelines" from the Capitol Hill Club in…

July 25, 2025
Pakistan

National Cybercrime Reports Hike in Social Media Honey Trap Scams

The National Cyber Emergency Response Team (NCERT) issued an advisory on July 23, 2025, alerting Pakistanis…

July 23, 2025
Tech

Pokémon Presents Livestream Updates on Legends Z-A and Champions

The Pokémon Company has announced its latest Pokémon Presents livestream, scheduled for July 22, 2025. This…

July 22, 2025
Business

Pakistan Cement Exports Surge 23.74% in FY 2024-25

Pakistan's cement exports experienced a significant 23.74% growth in fiscal year 2024-25 compared to the previous…

July 21, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?