IMF's forecast of Pakistan's economic growth nosedives to 0.5% for current fiscal year

Pakistan hit a new low on April 11 as the International Monetary Fund's (IMF) forecast of its economic growth dwindled yet again, this time dropping to 0.5% for the current fiscal year. According to Pakistani news outlet Dawn, the IMF also estimated that the cash-strapped nation's inflation is likely to surpass the 27% mark as the unemployment rate rises to a worrisome 7%.

For the fiscal year 2024, the financial agency predicted in its flagship World Economic Outlook (WEO) that Pakistan's economic growth could see a slight rise to 3.5%, although inflation and unemployment would likely continue to batter the country at 22% and 6.8%, respectively.

Financial institutions across the globe have blared warnings for Pakistan. Just last week, the World Bank urged it to immediately scramble for foreign loans to avoid the threat of a "public debt crisis," as nearly 4 million people head towards poverty. In its 'Pakistan Development Update' report, the institution said that the South Asian country's inflation rate is projected to be 29.5% for this year and 18.5% in the next year.

Pakistan marks Shehbaz Sharif's first year as PM with big crises in backdrop

Pakistan plunging deeper into crises on all fronts comes as its Premier Shehbaz Sharif completes a year in office. Presenting his report card on Tuesday, Sharif said that all hands are on deck to "revive the economy," and claimed that "all predictions of default have turned out to be false alarms."

But the PM's promises and words of assurance appear bleak for the people of Pakistan, who are scrambling for basic necessities and struggling to make ends meet. In the Khar region of the Bajaur tribal district, violent protests broke out earlier this week over an irregularity in the distribution of rations.