Pakistan’s gross government debt will fall from 74% of gross domestic product (GDP) in 2021 to around 71.3% of GDP in 2022, according to projections by the International Monetary Fund (IMF).
According to the “Fiscal Monitor, Fiscal Policy from Pandemic to War”, Pakistan’s gross public debt is expected to decrease in the coming years.
Gross debt to GDP was 74% in fiscal year 2021. However, it is expected to decline to 71.3% in the current fiscal year and 66.8% in the next fiscal year 2023, reported The Nation.
Meanwhile, it would further decline to 61.7% next year 2023. Government revenue is projected at 12.6% of GDP for 2022 and 12.9% for 2023 from 12.5% during the same period of 2021.
The fund has projected the government’s primary balance at -1% for 2022 from -1.1% in 2021. In addition, the government’s overall balance is projected at -5.8% for 2022 from -6.1% in 2021 , according to The Nation. .
The report forecasts public spending at 18.4% of GDP in 2022 and 17.1% in 2023, compared to 18.6% in 2021.
There would be a total financing need of around 35.9% of GDP in 2021.
Earlier on Tuesday, the IMF predicted Pakistan’s GDP growth of 4% in the current financial year.
The Fund projected the double-digit inflation rate at 11.2% for the year 2022 from 8.9% in 2021.
Meanwhile, the report projected consumer prices for the end of the 2023 period at 10.5%. The current account balance is projected at minus 5.3% for 2022, from minus 0.6%, according to The Nation.
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