Pakistan Finance Minister Miftah Ismail expects the economy to grow more than 3.5% for the fiscal year that started in July, Bloomberg News reported on Saturday.

Ismail predicted inflation, running at the highest in 47 years and the second-highest in Asia, was close to its peak and would average 15% for the year, the report said.

Govt will permit import of cotton for textile sector: Miftah Ismail

Curbs on luxury items may remain in place for longer than currently anticipated, Ismail was quoted as saying.

Meanwhile, in its detailed report released after the seventh and eighth reviews under the Extended Arrangement under the Extended Fund Facility, the International Monetary Fund (IMF) had said inflation in Pakistan would remain on the higher side because international commodity prices will be passed on to domestic consumers.

Average inflation in Pakistan to be 19.9% in fiscal year 2022-23, it projected. The multilateral lender also projected Pakistan's real GDP growth at 3.5% in FY23.

Floods have ravaged over a third of Pakistan's districts, and many experts believe the effects would be felt in coming weeks through higher inflation and lower economic growth.