Pakistan worsening economic crisis, coupled with a steeply rising inflation, has increased the risk of a financial meltdown for the country, according to estimates and forecasts of global lenders including the International Monetary Fund (IMF).
In a latest forecast, the IMF has reduced the economic growth estimates of Pakistan to 0.5 per cent, while the inflation spike projection estimates are far above 20 per cent for at least two years.
The staggering estimates showcase Pakistan's deep rooted financial crisis, which are showing their damaging affects on the people, who are facing severe hardships, which for the moment, are not going to end soon.
As per the IMF estimates, the interest rates in Pakistan are also expected to remain at their highest levels.
The IMF's World Economic Outlook report has also slashed the projection of Pakistan's current account deficit (CAD) for the current fiscal year, estimating it at about 2.3 of the Gross Domestic Product (GDP), which many experts believe is an unrealistic forecast.
As per the forecast, Pakistan's GDP growth has been revised with a downward trend, while the inflation forecast has been revised with an upward trend, which are in line with the current existing harsh, tough and struggling conditions of the country's economy.
The revision of IMF's inflation estimates for Pakistan also highlight a big jump in comparison to the eighth review of the lender's Extended Funding Facility (EFF, which was forecasted at about 19.9 per cent.
However, the revision of the inflation rate for the current fiscal year has shown the barometer crossing 27 per cent.
The current annual inflation rate in Pakistan has been recorded to be at 50-year high of at least 35 per cent.
And as per the IMF's forecast, the next fiscal year 2023-24 average inflation forecast has been increased to at least 21.9 per cent, a massive rise in comparison to eight months back, when the IMF had projected a 10 per cent inflation rate for the year 2023-24.
Experts say that the high inflation rate projections indicate that the current ruling government will not have the leverage of reducing interest rates if it intends to get into the new IMF programme.
"The country's central bank has already increased the interest rate by 21 per cent. The figure is still in the negative if adjusted with the inflation rate," said Khurram Shahzad, an economic expert.
Pakistan claims that it has secured at least $2 billion financing assurance from Saudi Arabia and is waiting for another $1 billon loan confirmation by the United Arab Emirates.
However, even after the assurances, a gap of at least $3 billion still persists.
Drugs valued at Rs 105 crore seized in Assam; 3 arrested
The Assam Police have seized drugs valued at Rs 105 crore along the inter-state border with Mizoram in Cachar district, an official said on Sunday, adding three persons were also arrested in this connection.
Human trafficking suspect wanted by NIA arrested in Tripura
The Tripura Police on Sunday arrested a human trafficking suspect who was on the 'wanted list' of the National Investigation Agency (NIA), an official said.
PM Modi 'deeply concerned' at Iran President's helicopter incidentv
Prime Minister Narendra Modi on Sunday expressed his "deep concern" at Iranian President Ebrahim Raisi's helicopter going missing after making a "hard landing" and prayed for his well-being.
PM Modi says 'this is Bharat's moment'; urges youth to 'dream big'
Prime Minister Narendra Modi, outlining the importance of ‘thinking big and thinking ahead of time’, on Sunday said that this is Bharat’s moment and we must not lose it.
Indian stock markets will break all records on June 4: PM Modi
Once the Lok Sabha election results are declared on June 4, the Indian stock markets will break all previous records, Prime Minister Narendra Modi said on Sunday.
AAP on streets to save accused, says Swati Maliwal
AAP Rajya Sabha member Swati Maliwal on Sunday while reflecting on the past 12 years since the horrific Nirbhaya case, said that 'they are now out on the streets to save the accused who made the CCTV footage disappear and formatted the phone'.
Captain Gopichand, five others set to fly to edge of space aboard Blue Origin mission
Captain Gopichand Thotakura, along with five others, is set to fly to the edge of space on Blue Origin's crewed flight mission on Sunday evening.
Air India Express flight's engine catches fire, makes emergency landing
The Air India Express flight from Bengaluru to Kochi had to make a full-scale emergency landing at Bangalore International Airport Limited (BIAL) due to a fire in one of its engines.