In the latest United Nations (UN) report on the World Economy, Global growth is expected to remain at 3.0% in 2019 and 2020.
However, Pakistan’s economic outlook is challenging and it encompasses significant downside risks.
Pakistan’s economic situation has declined over time and its GDP growth rate has forecasted slowdown in fiscal years 2018-19 and 2019-20, to 4.1% and 3.6% respectively.
Shedding further light on the Pakistan’s economy the UN added that, Pakistan is making their way towards the improvements in energy supply, infrastructure activities in CPEC. However, the Pakistan debt is also high close to 70% of GDP.
To overcome the financial debts the government is in talks with friendly countries for financial aids. Also the GOP is currently in talks with the IMF to secure further official assistance.
Furthermore, the UN reported that
“Against this drawback, growth is projected to slow down markedly in 2019 and 2020 to below 4.0%, after an estimated expansion of 5.4% in 2018”.
The UN representative emphasized on the need for policy actions, as the macroeconomic imbalances and financial delicacy pose significant risks of a further slowdown.
They suppose that entering an IMF program by 2019 would improve the fiscal consolidation of Pakistan.
Lastly, the report has estimated Pakistan’s Consumer Price Inflation (CPI) to increase to 7.3% by the end on FY19 before dropping back to 6.1% by the end of FY20.