The intelligence unit of the well-known English newspaper, The Economist, has released a report on the Pakistani economy, highlighting political instability, security, and economic weaknesses as major concerns.
According to the report, the current government has lost popularity due to rising inflation and taxes, and Pakistan needs to repay $77.5 billion in external debt in four years.
The report predicts that the dollar will reach 291 rupees in 2023 and 302 rupees in 2025, while the rupee will continue to weaken from 2024 to 2027. It also suggests that the interest rate could increase by another 2% to reach 23%, while the economic growth rate will be 1.5% this year and -0.2% next year. Inflation is predicted to be 30.3% this year and 20.8% next year.
The report also notes that unemployment in Pakistan will increase to 9.6% this year and 9.9% next year. The intelligence unit recommends that Pakistan needs to take a new IMF program to avoid default.
In addition, today, the Treasury Department has released a report on loans, which shows that the volume of loans has increased due to rising interest rates. Both inflation and debt have increased due to the rising exchange rate of the dollar. The report predicts that inflation will remain at 28.5% this year, while the inflation rate will be 21% in the next financial year. Pakistan’s… (the rest of the text is missing).
