ISLAMABAD: The International Monetary Fund (IMF) has projected GDP growth rate for Pakistan at 1 percent for 2021 against -0.4 percent in 2020. The IMF World Economic Outlook (WEO) report "A long and difficult Ascent," projected a rise in unemployment ratio for Pakistan from 4.5 percent in 2020 to 5.1 percent in 2021.

The Fund has projected inflation rate at 8.8 percent for 2021 against 10.7 percent in 2020. The current account balance is projected at negative 2.5 percent for 2021 compared to negative 1.1 percent for 2020.

The World Bank (WB) has projected Pakistan's GDP growth rate at 0.5 percent, inflation rate at 9 percent and current account balance at negative 1.5 percent of GDP. IMF further stated that remittance flows contracted sharply during the early lockdown period but have shown signs of recovery.

Nonetheless, the risk of a decline in payments and transfers from migrant workers back to their home countries is very significant, particularly for such countries as Bangladesh, Egypt, Guatemala, Pakistan, the Philippines, and those in sub-Saharan Africa more broadly.

Copyright Business Recorder, 2020