IMF predicts Pakistan growth rate at 1.5% for current fiscal year

By
Web Desk

January 27, 2021

The International Monetary Fund (IMF)'s logo. Photo: Reuters/File
  • IMF has projected Pakistan’s GDP growth rate at 1.5% for the current fiscal year 2020-21 as compared to the previous fiscal year
  • However, the incumbent government has envisioned a GDP growth rate target of 2.1% for the current fiscal 2020-21
  • The IMF’s World Economic Outlook for 2021 highlights that the global economy is projected to grow at 5.5%

ISLAMABAD: As compared to the negative growth of 0.4% for the previous fiscal year 2019-20, the International Monetary Fund (IMF) has projected Pakistan’s GDP growth rate at 1.5% for the current fiscal year 2020-21, The News reported on Wednesday.

However, with the expectation that the recovery of economic activities will help improve the growth trajectory in the aftermath of overcoming the COVID-19 pandemic, the incumbent government has envisioned a GDP growth rate target of 2.1% for fiscal year 2020-21.

On the other hand, the international regulatory body had projected a positive GDP growth rate of 1.9% for Pakistan in the last fiscal year, but after the outbreak of the coronavirus pandemic, the GDP growth had fallen and stood at a negative 0.4% for the fiscal year that ended on June 30, 2020.

Read more: Pakistan inches closer to IMF programme revival

Pakistan’s GDP growth forecast is projected at 1.5% for the current fiscal year as the difference from October's last projection was 0.5%,  according to the Economic Outlook for 2021 update released by the IMF.

The IMF had projected GDP growth rate at 1% but has now revised it upward to 1.5% for the current fiscal year. 

The IMF has projected that Pakistan’s growth rate will be 4% of GDP in the next fiscal year 2021-22.

The IMF’s World Economic Outlook for 2021 highlights that the global economy is projected to grow at 5.5%.

It also showed that the emerging economies stood at 8.3% and Africa at 3.2%. 

India is projected to grow at 11.5 percent, China 8.1%, Malaysia 7%, Turkey 6%, France 5.5%, the USA 5.1%, Mexico 4.3%, and Nigeria 1.5%.