ISLAMABAD    -   The International Mon­etary Fund (IMF) has projected Pakistan’s in­flation rate at around 20 percent during the current fiscal year

The IMF has estimat­ed that Pakistan’s GDP growth would decline to 3.5 percent during the ongoing financial year (FY23) from 6 percent of the previous year (FY22). 

Meanwhile, the un­employment rate would also record decline and pro­jected to drop to 6 percent in FY23 from 6.2 percent in FY22. However, the inflation is projected to increase at higher side, 19.9 percent in the FY23, which was 12.1 percent in the last fiscal year. The IMF has shared the details after com­pleting the combined seventh and eighth reviews under the Extended Fund Facility (EFF) for Pakistan, allowing the au­thorities to draw the equiva­lent of SDR 894 million (about US$1.1 billion). In order to support program implemen­tation and meet the higher fi­nancing needs in FY23, as well as catalyze additional financ­ing, the IMF Board approved an extension of the EFF un­til end-June 2023, rephasing and augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$6.5 bil­lion. According to the IMF, Pa­kistan’s budget deficit is pro­jected at 4.7 percent in FY23 from 7 percent in the FY22. Revenues and grants would remain at 12.4 percent of the GDP as against expenditures of 17.1 percent of the GDP