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IMF Revises Economic Targets for Pakistan, Lowers Growth and Inflation Projections
The IMF has revised Pakistan's economic growth forecast to 3.2%, down from 3.5%. Inflation is expected to remain at 9.5%, while the current account deficit is projected at 0.9%.
ND
by News Desk
2024-10-11
IMF Revises Economic Targets for Pakistan, Lowers Growth and Inflation Projections

The International Monetary Fund (IMF) has revised its economic targets for Pakistan, adjusting key indicators such as economic growth, inflation, and the current account deficit for the fiscal year 2024. The revisions were made in light of the country's ongoing economic challenges and external pressures.

 

Economic Growth Lowered

According to the latest IMF report, Pakistan’s economic growth rate is now projected to be 3.2% for 2024. This is a slight decrease from the earlier estimate of 3.5%. The revision reflects the financial institution's more cautious outlook on Pakistan’s economic recovery, as the country continues to navigate economic instability and external challenges.

 

Inflation and Current Account Deficit Adjusted

The IMF has also updated its inflation forecast for Pakistan, predicting a lower inflation rate of 9.5%, compared to the previous estimate of 12.7%. This revision suggests some relief for consumers, as the inflation rate is expected to moderate slightly.

 

In terms of the current account deficit, the IMF has adjusted the target to 0.9%, down from the earlier projection of 1.2%. The reduced deficit is a positive indicator, showing that Pakistan’s external accounts may perform better than initially expected.

 

Foreign Exchange Reserves Outlook

Additionally, the IMF has revised its projection for Pakistan's foreign exchange reserves. The reserves are now expected to stand at $12.8 billion, slightly lower than the earlier estimate of $13.4 billion. This revision reflects the country’s ongoing struggle to shore up foreign reserves amid global economic uncertainties.

 

Conclusion

The IMF's revised economic targets present a mixed picture for Pakistan. While the lower inflation and current account deficit offer some optimism, the reduction in economic growth highlights the challenges ahead for the country’s recovery. Pakistan will need to continue its economic reforms and address structural issues to meet these updated targets.

 

 
Tagged:

IMF

inflation

PakistanEconomy

EconomicGrowth

ForexReserves
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