Market

Pakistan is seeking investments from Saudi Arabia and the United Arab Emirates to mitigate its ongoing financial crisis. But attracting this critical Gulf capital requires substantial improvements in Pakistan's investment climate. Successful investment attraction will depends on presenting well-structured projects that promise sustainable growth. The government must also avoid over incentivising foreign investors at the expense of local industries, as this could lead to market imbalances and long-term economic liabilities. Pakistan’s economic situation is teetering on the brink as the country is facing a perilous financial crisis, scrambling to secure external financing to meet growing obligations. The country has received only temporary relief from a US$7 billion staff-level agre...

ISLAMABAD: The Interna­tional Monetary Fund (IMF) has forecast Pakistan’s economy to grow by 3.2 per cent during the current fiscal year, falling short of the government’s budget target but surpassing projections by two other leading multilateral organisations. This growth rate is expected to be accompanied by a single-digit inflation rate of 9.5pc and a current account deficit nearing 1pc. In its World Economic Outlook (WEO-October 2024) released on Tuesday, the IMF also estimated global economic growth to stabilise at 3.2pc after “winning the battle against inflation”, despite ongoing risks related to regional conflicts, a slowdown in China, and the lasting effects of tight monetary policies and financial market volatility. The IMF, which recently approved a $7 billio...

Let’s start with the good news: it looks like the global battle against inflation has largely been won, even if price pressures persist in some countries. After peaking at 9.4 percent year-on-year in the third quarter of 2022, we now project headline inflation will fall to 3.5 percent by the end of next year, slightly below the average during the two decades before the pandemic. In most countries, inflation is now hovering close to central bank targets, paving the way for monetary easing across major central banks. The global economy remained unusually resilient throughout the disinflationary process. Growth is projected to hold steady at 3.2 percent in 2024 and 2025, but some low-income and developing economies have seen sizable downside growth revisions, often tied to intensifying co...