The International Monetary Fund (IMF) said on Tuesday that Pakistan's economic growth rate for the ongoing fiscal year is projected to reach 3.5 per cent.
The IMF's updated global economic outlook report states that the government has set an economic growth target of 3.6 percent in the new budget.
Last fiscal year, Pakistan's economic growth rate reached 2 per cent. According to the IMF, the global economy is expected to grow at a rate of 3.3 per cent this year.
Meanwhile, India's GDP growth for this year is projected to reach 6.5 percent, while China's GDP growth is expected to be 4.5 percent. Global inflation and interest rates are anticipated to remain high.
The IMF also forecasted a rise in global commodity prices and suggests that interest rate cuts are likely in the second half of the year.
Meanwhile, the report highlighted external, financial, and economic risks to the global economy, with energy and food prices expected to gradually return to pre-coronavirus levels.
– IMF wants Pakistan to 'do more' –
Few days back, the IMF had intensified its demands on Pakistan to 'do more' and enhance transparency within government institutions as part of negotiations for a new bailout package.
Despite Pakistan fulfilling its strict conditions in the new budget, the IMF still demands it to 'do more'. The IMF's stringent conditions include pushing for a 45 per cent tax on agricultural income and abolishing exemptions for the livestock sector, sources reveal.
Despite Pakistan's efforts to privatize profitable state-owned enterprises, challenges have arisen in selling shares to Gulf countries due to IMF objections against government-level sales. According to sources, the IMF has raised concerns about exemptions under the Privatization Commission Ordinance, PPRA laws, and SOEs law in the sale of shares.
