IMF Forecasts Decrease in Unemployment Rate in Pakistan

The International Monetary Fund (IMF) has released a new report forecasting a decrease in the unemployment rate in Pakistan, following the recent agreement between the two parties.

The IMF predicts that Pakistan’s economic growth rate could rise to 3.2% under the terms of the agreement, an increase from last year’s growth rate of 2.4%. Unemployment is anticipated to drop from 8% to 7.5%, while inflation may fall to 9.5%, down significantly from a staggering 23.4% in the previous fiscal year.

The report also indicates an expected rise in government revenues, which could constitute 15.4% of the economy, compared to 12.6% last year. Furthermore, national debt is projected to climb from 67% to 69% of GDP.

To achieve these goals, the IMF emphasizes the urgent need for a fair and equitable tax system in Pakistan. It highlights the importance of incorporating all sectors into the taxation framework and insists on strict adherence to anti-money laundering regulations. The IMF also calls for measures to reduce losses from state-owned enterprises and improve governance in public departments.

Moreover, the report underscores that the reform process must remain robust and ongoing. The Pakistani government is urged to implement necessary energy reforms aimed at lowering electricity costs and ensuring timely adjustments in energy pricing. Continued efforts to enhance revenue generation are also recommended.

In addition to these economic reforms, the report identifies several pressing challenges, including the need to combat corruption in public institutions, mitigate environmental damage, ensure equitable business opportunities, and boost productivity across all sectors.