Pakistan: Economy issues because of politics

The IMF think if Pakistan’s government does not make good money plans, and if other countries do not give Pakistan money help, then it will be very hard for Pakistan to pay back the money it owes.

The IMF also thinks this can cause big problems for how much Pakistani money is worth compared to other countries’ money.

High Inflation a Big Challenge

One of the biggest challenges made worse with the aid of systemic issues, according to the countrywide financial institution, is high and lengthy-lasting inflation. The document emphasised the need for policy modifications to deal with this hassle and make the economic system strong.

Despite the political uncertainty, the central bank expects inflation to keep going down. Consumer price inflation slowed to 17.3% in April compared to a year earlier, the lowest rate in nearly two years.

Economic Growth and Budget Worries

The central bank predicted that real GDP growth for the fiscal year 2024 would be between 2% and 3%. This forecast shows the difficult economic situation and the need to address structural problems and restore political stability.

The report also talked about the government’s budget challenges. It said that maintaining financial discipline and implementing sensible policies will be crucial for achieving economic stability and sustainable growth.