Pakistan’s economy is in a tail-spin. We have discussed the impending doom for the Pakistani economy since 2018. Only its shenanigans and the ability to sell any snake oil to other countries has managed to keep it from fully collapsing. Things are about to get worse.
While, there is no money, and no food for the hungry and poor, the money to even repay the debts is running out completely. The deficit is projected to grow to close to 10% of the nation’s GDP.
It said that Pakistan’s budget deficit that in pre-COVID-19 situation had been projected at 7.3 per cent of gross domestic product (GDP), may increase to 9.2 per cent. In absolute terms, the deficit will be equal to Rs 4 trillion, higher by Rs 800 billion than previous estimates, it added.Inflation is projected to remain at 11.1 per cent this year and 8 per cent next year. (Source: IMF warns Pakistan’s budget deficit may hit record high due to coronavirus crisis | Business Standard News)
What one finds intriguing is that IMF still feels that the inflation will remain at 11.1% as predicted earlier. Here is an analysis on Pakistani economy by Javed Hassan – who has worked at World Bank.
Check out some of the reactions of common people on how inflation is impacting them during Corona situation.
Even though IMF has a pretty bleak prediction for Pakistan, but in all seriousness it could be even worse.