Pakistan’s GDP growth of 0.29 percent signals the onset of stagflation.
Rupee devaluation is due to “drama” at the IMF, according to Dar, who also rejects a new pact and promises to restore macroeconomic stability.
Finance Minister Ishaq Dar on Thursday ruled out a new arrangement with the International Monetary Fund (IMF), and there are no prospects of an early recovery after Pakistan’s economy slid into stagflation during the outgoing fiscal year (0.3% economic growth with the 38% inflation rate).
Dar emphasized the importance of having a “Plan B” while unveiling the Pakistan Economic Survey 2022-23, but he did not provide any specifics.
The outgoing fiscal year’s economic growth rate of 0.3% was considerably below the projected rate of 5%, which the finance minister blamed on the unfavorable perception and loss of faith.
High unemployment and poverty were also results of the slower development, which came as the country prepared for its highest-ever inflation rate of 38% in May of this year.
Dar waited over half an hour to begin discussing the economy’s key metrics from the previous fiscal year.
The 13-party coalition government was unable to accomplish a single significant economic goal in the previous fiscal year.
Dar, defending his government’s low performance, said, “Despite all the constraints, the GDP growth is 0.29%, which is a realistic achievement and it could not have been better than this.”
Indicative of economic mismanagement, the 0.29 percent increase in national output is the lowest in the last four years.
