In yet another bad news for already suffering people, the International Monetary Fund (IMF) said that the inflation wouldn’t come down till the end of the current fiscal year. According to the IMF s Regional Economic Outlook Report, inflation in Pakistan will remain above 11% by the end of this financial year, while the country’s economic growth is expected to be at 4% this year as compared to its growth of 5.6% during the previous year. Pakistan s current account deficit ballooned to US$13.2 billion in the nine months of its fiscal year from a gap of US$275 million a year earlier on the back of soaring oil import costs, official data showed. Rating agency Moody s expects the deficit to widen to 5-6per cent of gross domestic product in the current fiscal year ending June 30, up from its earlier 4per cent projection, putting greater pressure on Pakistan s foreign reserves. Jihad Azour, director of IMF s Middle East and Central Asia Department, told Reuters the fund s team will assess the policy priorities of the new government and the economic impact in the context of the war in Ukraine.

Source: The Nation April 28, 2022 08:07 UTC