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Pakistan’s economy is not handled, despite all efforts, the pace of economic growth sluggish – India tv hindi

by Aaryan Srivastav
February 2, 2025
Pakistan's economy is not handled, despite all efforts, the pace of economic growth sluggish - India tv hindi

Photo: File Pakistan

The economy of Pakistan, stuck in crisis, is not going to be careful about all efforts. The brunt of this is suffering from the youth of the country. Employment opportunities are not increasing and unemployment is increasing rapidly. Let us tell you that Pakistan has not been able to speed up economic growth in the first 7 months of the current financial year, while during this time the central bank had cut the interest rate of 10 percent. A media report has given this information. State Bank of Pakistan has reduced the interest rate to 12 percent in the latest cuts made on 27 January, which is 10 percent less than 22 percent of June last year. It was expected that this decision would help in speeding up money supply and growth.

Sahara was not found even due to cheap lone

According to the report of the newspaper ‘Dawn’, monetary expansion remained negative during the first seven months of the current financial year (July-June) despite a steep fall in the interest rate. It states that due to the steady fall in interest rates, there was a large amount of cash from banks towards private sector and non-banking financial institutions (NBFIs). It said, “Nevertheless, it has not been able to encourage economic growth.” In the second quarter of the current financial year, the private sector and NBFI increased to the bank advance.

IMF reduced growth estimate

The International Monetary Fund (IMF) has revised Pakistan’s economic scenario facing cash crisis and reduced its economic growth estimate to three percent in 2025. The revised estimates of the IMF also indicate that the growth rate of Pakistan’s GDP (GDP) in the year 2026 will be at four percent. However, the decline in the growth rate of 2025 reflects the ongoing economic challenges in the country. However, the IMF has not given specific reasons for the amendment. The Monetary Fund said that Pakistan’s growth rate was 3.2 percent in its estimate of three months ago. This latest amendment reflects the forecast by the Asian Development Bank (ADB) last month. ADB also adjusted Pakistan’s growth forecast to three percent for the current financial year (2024–25), the earlier estimated 2.8 percent. The report stated that both institutions have cited challenges before Pakistan’s economy, but have maintained alertly optimistic approach for a medium term.

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