IMF expresses concerns over rising inflation in Pakistan

Islamabad (HRNW)  The International Monetary Fund (IMF) has expressed concerns over rising inflation and widening current account deficit of Pakistan.

In a statement, the IMF said that Pakistan entered the COVID-19 pandemic with strengthened buffers, following the approved EFF program. A strong economic recovery has gained hold since the summer of 2020, benefiting from the authorities’ multifaceted policy response to the unprecedented shock.

At the same time, external pressures also started to emerge in 2021, including a widening current account deficit and depreciation pressures on the exchange rate which also reinforced domestic price pressures, it added.

Lauding the recent steps taken by the government, the IMF said, “The recent policy adjustment was appropriate to address these challenges and maintain economic stability.”

The economy is set to continue recovering in FY 2022, with real GDP growth projected at 4%, while inflation is expected to pick up this year before gradually slowing down, it added.