The International Monetary Fund (IMF) fears Pakistan’s trade deficit may reach historic levels, the latest report by the World Lender says Pakistan’s trade deficit could reach 9.2 percent of GDP equivalent to 40 trillion rupees.
According to a report released yesterday, ‘Middle East and Central Asia Regional Economic Outlook’, the budget deficit before the Corona epidemic was estimated at 7.3 percent of GDP, which can now rise to 9.2 percent.
The deficit in the figure is 40 trillion rupees, which is an additional 8 trillion rupees as per earlier estimates; the report also said that Pakistan should pay special attention to the health sector as expenditure in this sector is lowest in the region.
According to the IMF, increasing prices of commodities or inflation will be 11.1 percent this year and 8 percent next year. According to the Ministry of Finance, revenue deficits are expected to increase as a result of shocks given by Coronavirus because the government has not yet announced any significant increase in budget spending.