A rise in the unemployment ratio for Pakistan has been projected by the International Monetary Fund (IMF). It has been projected that unemployment in Pakistan will reach 5.1% in 2021 from 4.5% in 2020.
According to the details, in the IMF World Economic Outlook (WEO) report titled “A long and difficult Ascent”, it was projected that the GDP growth rate for Pakistan would be at 1% for 2021 against -0.4 percent in 2020.
It has been projected by the Fund that the inflation rate for 2021 will be at 8.8% against 10.7% in 2020. For 2021 the present account balance is projected at negative 2.5 percent against negative 1.1% for 2020.
The GDB growth rate of Pakistan has been projected by World Bank at 0.5%, the inflation rate at 9% while the current account balance at a negative 1.5% of GDP.
Furthermore, the IMF stated that the remittance flows shrank sharply amidst the early COVID-19 lockdown. But now they have shown some signs of recovery. However, there is a risk of decline in payments and transfers from migrant workers back to their home countries especially to countries like Bangladesh, Egypt, Guatemala, Pakistan, the Philippines, and sub-Saharan Africa countries.
On the global economy for this year, the IMF turned a bit positive. However, it gave warning of a “long, uneven and uncertain” recovery.
The IMF’s chief economist, Gita Gopinath, in the latest World Economic Outlook said, “We are projecting a somewhat less severe though still deep recession in 2020, relative to our June forecast.”