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IMF estimates Pakistan’s GDP growth to 4% this year, inflation to stay in double digit

Pakistan’s exports for goods and services are projected at $37.8 billion for 2022 and $40.8 billion for 2023 compared to $31.5 billion in 2021. Imports of goods and services are projected at $85 billion for 2022 and $86.5 billion for 2023 compared to $61.7 billion in 2021.

ISLAMABAD: The International Monetary Fund (IMF) has estimated Pakistan’s GDP growth to 4% in 2022, down from 5.6 percent in 2021 and consumer price inflation to remain in double digit, 11.2%.

In its latest report, “Regional Economic Outlook Middle East and Central Asia, divergent recoveries in turbulent times”, the IMF has anticipated a decline in gross official reserves for Pakistan from $17.3 billion in 2021 to $15.9 billion in 2022 and $13.6 billion in 2023. Pakistan’s gross official reserves are projected at 2.2 month of imports for 2022 and 1.9 months of imports for 2023 compared to 2.4 months of imports in 2021.

Pakistan’s exports for goods and services is projected at $37.8 billion for 2022 and $40.8 billion for 2023 compared to $31.5 billion in 2021. Imports of goods and services is projected at $85 billion for 2022 and $86.5 billion for 2023 compared to $61.7 billion in 2021.

The Fund has projected consumer price inflation at 11.2 percent for 2022, up from 8.9 percent in 2021. Core consumer price inflation is projected at 8.5 percent for 2022 and 10 percent for 2023 against 6.6 percent in 2021.

In a few, domestic supply-chain constraints (Armenia, Kyrgyz Republic) and stronger domestic demand (some CCA countries, Pakistan) have added to inflation pressures, the Fund added. The fund has projected Pakistan’s broad money growth at 14.9 percent for 2022 and 13.4 percent for 2023 against 16.2 percent in 2021.

The central government net lending/borrowing is projected at -6.3 percent of GDP for 2022 and -5.4 percent for 2023 against -6.6 percent in 2021.

The general government fiscal balance is projected at -5.8 percent for 2022 and -4.2 percent for 2023 against -6.1 percent in 2021. The general government total revenue, excluding grants is projected at 12.5 percent of GDP for 2022 and 12.9 percent for 2023 compared to 12.4 percent in 2021.

Pakistan’s total government gross debt is projected at 71.3 percent of GDP for 202 and 66.8 percent for 2023 compared to 74 percent in 2021. Total government net debt is projected at 65.4 percent for 2022 and 61.7 percent for 2023 compared to 66.4 percent for 2021. The report noted that public debt in 2021 declined in Pakistan by 6 percent of GDP.

The report noted that debt is set to moderately increase for Egypt, Georgia, and Morocco, whereas the increase is more considerable for Armenia and Tunisia (about 4 percentage points) relative to 2021 reflecting the impact of depreciation on foreign currency debt. This leaves debt in EM&MI countries 13 percentage points of GDP above pre-pandemic levels, on average, in 2022, except for Pakistan whose debt level is projected at 6 percentage points of GDP below pre-pandemic levels.

The Fund has projected Pakistan’s current account balance at -5.3 percent for 2022 and -4.1 percent 2023 compared to -0.6 percent in 2021.

IMF has projected a decline in gross official reserves for Pakistan from $17.3 billion in 2021 to $15.9 billion in 2022 and $13.6 billion in 2023.

Pakistan’s total gross external debt is projected at $34.2 billion for 2022 and $32.7 billion in 2023 compared to $34.7 billion in 2021. Pakistan’s gross official reserves are projected at 2.2 month of imports for 2022 and 1.9 months of imports for 2023 compared to 2.4 months of imports in 2021.

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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