The International Monetary Fund (IMF) on Tuesday said Pakistan’s economic growth rate for the current fiscal year is expected to reach 3.5 percent.
The IMF’s updated Global Economic Outlook reports 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 percent. According to the IMF, the world economy is expected to grow at a rate of 3.3 percent this year.
Meanwhile, India’s GDP growth for this year is expected to reach 6.5 percent, while China’s GDP growth is expected to reach 4.5 percent. Global inflation and interest rates are expected to remain high.
The IMF has also forecast a rise in global commodity prices and suggests that interest rate cuts are likely in the second half of the year.
– IMF wants Pakistan to “do more” –
A few days ago, the IMF stepped up its demands for Pakistan to “do more” and increase transparency in government institutions as part of negotiations on a new bailout package.
The IMF’s tough conditions include enforcing a 45 percent tax on agricultural income and scrapping exemptions for the livestock sector, sources said.
According to sources, the IMF has raised concerns about exemptions under the Privatization Commission Regulation, PPRA laws and the SOE Act when selling shares.
