ISLAMABAD: Pakistan’s economy is expected to experience a boost, with the International Monetary Fund (IMF) projecting a 3.2% GDP growth rate for the fiscal year 2025, amidst declining inflationary pressures. This growth is anticipated to have a positive impact on the unemployment rate, albeit a slight one.
Ironically, the IMF projected GDP growth ranging to 4.2% to the fiscal year 2029 indicating that the low growth trajectory will remain even after the completion of the IMF programme beyond 37 months of the existing Extended Fund Facility (EFF).
The population growth of the country stands at 2.55%, so the GDP growth rate of a little bit higher will remain insufficient to create jobs and dent poverty over the medium.
The question arises as to how the IMF programme will become beneficial in such an emerging scenario. According to the World Economic Outlook (WEO), 2024 report released by the IMF on Tuesday in Washington, DC, on the occasion of annual meetings of the IMF/World Bank, the unemployment rate in Pakistan stands at 8% for the current fiscal year (FY25) against 8.5% during the last fiscal year ended on June 2024.