IMF Projects Inflation Rate to Remain Over 19% in 2023

The International Monetary Fund (IMF) has projected an inflation rate of 19.9 percent for 2023 against 12.1 percent in 2022. However, the report has projected consumer prices for the end of the period of 2023 at 15 percent against 21.3 percent in 2022. The fund has projected the GDP growth rate for Pakistan at 3.5 percent for 2023 against 6 percent in 2022, but it does not include the impact of the recent floods. The Fund has also projected an increase in unemployment in Pakistan to 6.4 percent in 2023 compared to 6.2 percent in 2022. The IMF World Economic Outlook (WEO) report “World Economic Outlook Countering the Cost-of-Living Crisis”, stated that the 2022 projections for Pakistan are based on information available as of the end of August and do not include the impact of the recent floods. The current account balance is projected at negative 2.5 percent for 2023 compared to negative 4.6 percent for 2022.