Inflation expected to remain at 18.5% rate in Pakistan, IMF report

The International Monetary Fund (IMF) report on Pakistan’s economy has come out.

The IMF report said that inflation in Pakistan is expected to remain at the rate of 18.5 percent, while the rate of inflation in rural areas may reach 25.9 percent.

In the report, the IMF says that the pressure of external payments on Pakistan will not end immediately, this pressure of external payments will remain for a few years.

The IMF report said that the current account deficit would remain at 1.6 percent of the economy, delaying funding by financial institutions could hurt the economy.

The report states that the delay in funding by financial institutions may put pressure on the value of the rupee, and Pakistani people will also be affected by the increase in the cost of food and beverages in the global market.

According to the IMF report, there will be no increase for government employees and pensioners till June, the development budget will be cut by 61 billion rupees.

In the report, the IMF has said that Nepra will issue a timely notification in determining the price of electricity.

IMF says in the report that Ogra will issue the notification for increasing gas rates on time, the half-yearly increase in gas rates will be done on time.

The report states that Pakistan needs external financing of 71 billion 88 billion dollars in the next 3 years, external funding of 24 billion 96 billion dollars is required in the current financial year alone.

According to the IMF document, 22 billion 24 billion dollars will be needed in 2025 and 24 billion 67 billion dollars in 2026.

In the report, the IMF says that the amount of debt owed by Pakistan is unsustainable and the external risks are high. To deal with the challenge, heavy financing will be required from international financial institutions and various countries.

In the document, the IMF has also stated that the Government of Pakistan has assured the IMF of external financing arrangements.