Pakistan worsening economic crisis, coupled with a steeply rising inflation, has increased the risk of a financial meltdown for the country, according to estimates and forecasts of global lenders including the International Monetary Fund (IMF).
In a latest forecast, the IMF has reduced the economic growth estimates of Pakistan to 0.5 per cent, while the inflation spike projection estimates are far above 20 per cent for at least two years.
The staggering estimates showcase Pakistan's deep rooted financial crisis, which are showing their damaging affects on the people, who are facing severe hardships, which for the moment, are not going to end soon.
As per the IMF estimates, the interest rates in Pakistan are also expected to remain at their highest levels.
The IMF's World Economic Outlook report has also slashed the projection of Pakistan's current account deficit (CAD) for the current fiscal year, estimating it at about 2.3 of the Gross Domestic Product (GDP), which many experts believe is an unrealistic forecast.
As per the forecast, Pakistan's GDP growth has been revised with a downward trend, while the inflation forecast has been revised with an upward trend, which are in line with the current existing harsh, tough and struggling conditions of the country's economy.
The revision of IMF's inflation estimates for Pakistan also highlight a big jump in comparison to the eighth review of the lender's Extended Funding Facility (EFF, which was forecasted at about 19.9 per cent.
However, the revision of the inflation rate for the current fiscal year has shown the barometer crossing 27 per cent.
The current annual inflation rate in Pakistan has been recorded to be at 50-year high of at least 35 per cent.
And as per the IMF's forecast, the next fiscal year 2023-24 average inflation forecast has been increased to at least 21.9 per cent, a massive rise in comparison to eight months back, when the IMF had projected a 10 per cent inflation rate for the year 2023-24.
Experts say that the high inflation rate projections indicate that the current ruling government will not have the leverage of reducing interest rates if it intends to get into the new IMF programme.
"The country's central bank has already increased the interest rate by 21 per cent. The figure is still in the negative if adjusted with the inflation rate," said Khurram Shahzad, an economic expert.
Pakistan claims that it has secured at least $2 billion financing assurance from Saudi Arabia and is waiting for another $1 billon loan confirmation by the United Arab Emirates.
However, even after the assurances, a gap of at least $3 billion still persists.
Tripura CM Saha holds key meeting with BJP, IPFT and TMP leaders
Tripura Chief Minister Manik Saha on Friday held an "important" meeting between the leaders of ruling BJP and its two allies – Tipra Motha Party (TMP) and Indigenous People's Front of Tripura (IPFT) and discussed various political and developmental issue, sources said.
HM Amit Shah's meeting sends a clear message: Not a drop of water to Pakistan
A high-level meeting was held on Friday at the residence of Union Home Minister Amit Shah regarding the suspension of the Indus Waters Treaty. The 45-minute meeting between the Home Minister and Union Jal Shakti Minister C.R. Patil focused on exploring ways to halt the flow of water to Pakistan.
Tripura: TMP chief urges Centre to adopt 'stronger policy' against B'desh
Ruling BJP’s ally Tipra Motha Party (TMP) founder-chief Pradyot Bikram Manikya Debbarma on Friday urged the Central government to adopt a stronger policy stance towards Bangladesh, accusing the neighbouring country of encouraging fundamentalist forces targeting Hindu minorities.
Pahalgam attack: More countries express solidarity with India, offer support in fight against terrorism
Ambassadors of Israel, Egypt, Argentina, and Nepal met External Affairs Minister (EAM) S. Jaishankar in New Delhi on Friday, expressing solidarity with India in its fight against terrorism following the heinous terror attack in Pahalgam.
Tripura CM directs SPs and DMs to remain vigilant about Pakistani nationals
Tripura Chief Minister Manik Saha on Friday directed the Superintendents of Police (SPs) of all eight districts to regularly share necessary inputs with the Chief Minister’s Secretariat regarding the presence of any Pakistani nationals in the state, officials said.
US supports India's 'hunt' for those behind 'horrific Islamist terrorist attack' in Pahalgam, says Gabbard
Tulsi Gabbard, Director of National Intelligence (DNI), on Friday said that the United States supports India's "hunt" for the perpetrators of the "horrific Islamist terrorist attack" in Pahalgam that took place earlier this week.
Tehran stands ready to 'forge greater understanding' between India and Pakistan: Iran FM Araghchi
Citing its good relations with both India and Pakistan, Iran on Friday said that it stands ready to "forge greater understanding" between New Delhi and Islamabad following the Pahalgam terror attack, earlier this week.
PM Modi's action will act as deterrent against any fresh attempts to harm India: Tripura CM
Tripura Chief Minister Manik Saha on Friday denounced the Pahalgam terror attack, asserting his staunch belief that Prime Minister Narendra Modi's decisive action will act as a strong deterrent against any future attempts by terrorists to harm India.