Despite the improvement in the GDP of Pakistan from negative to one percent, the price hike is expected to raise up to 10.2 % and rate of unemployment will further jump by the end of this fiscal year, says the World Economic Outlook (WEO) report of IMF.
The ratio of price hike in the next year is likely to be 8.8%. The ratio of unemployment is also expected to increase from 4.5% to 5.1% in 2021, as per the released report by IMF prepared for all the countries of the world with reference to their economies. The report has been prepared to analyze the effects of coronavirus during the next five years.
In another report issued earlier, the IMF has mentioned the same. Today when the prices of the household items, especially the kitchen items have skyrocketed to the extent of unaffordability by the lower-middle-class families, this report of IMF about Pakistan seems to be highly alarming. Although, Prime Minister Imran Khan has taken the notice of the situation and assigned the task of controlling the prices to the Tiger force yet the impact of it is to be seen.
The traders of the country have raised to question the official status of the tiger force as they are of the view that it will be a sort of intervention in their trading activities. The economic condition of Pakistan has never been stable for a long time and increasing poverty is the main reason for it.
Not only in the industrial sector but the agriculture sector that has been a dominant part of the GDP has also on the declining side. For example, out of three main crops which are rice, wheat, and cotton, Pakistan is now importing wheat and cotton.
Coronavirus is still spreading in India and Bangladesh and the traders of Europe and the USA are reluctant in importing the items from these two countries. This is the golden opportunity for Pakistan to take benefit of the situation and start exporting to Europe and the USA but for that, the most appropriate and comprehensive policies are needed.