The recent IMF report on Pakistan's economy is very encouraging ... The effects of the global economic slowdown on the Pakistani economy have been exacerbated
Christina Lena Georgieva, director of the World Monetary Fund, says that the world economy is going through a slowdown. They are progressing but the pace of development is very slow. In fact, two years ago, the world economy was rising, but now it is slowing. Currently, 90% of the world's population suffers a slowdown. The economic growth rate in 2019-20 will be the lowest in the last ten years.
Unemployment has historically been low in countries like the United States and Germany, but economic activity is also slowing. The global business has stopped. Emerging economies such as India and Brazil are also having a recessive effect. The IMF has described the trade war as the biggest threat to the global economy, saying that the slowdown in the global growth rate at the beginning of last year has again deviated and the world economy is on its way. Time goes by.
The IMF said this in its annual report published here yesterday. This statement is very important in the context of the last two and a half years of trade war between the two largest economies in the world, the United States and China. David Lipton, who served as managing director of the current IMF managing director, Cristalina Georgiou on October 1, wrote in his comment, in recent years, that the world has been the world's leading business. He passed.
However, this benefit has not reached everyone. David Lipton said there are some defects in the trading system that must be corrected. Working collectively for the protection and innovation of the international trading system is important. The global economy is going through a critical phase right now, said IMF Chief Executive Director David Lipton. In early 2018, global economic growth strengthened.
But he lost his momentum due to the commercial war. There are also risks related to financial and geopolitical uncertainties. The globalization of trade has benefited the world in recent years, but it has not benefited everyone.
The impact of this global economic slowdown in Pakistan, whose economy is already suffering enough, has been exacerbated.
Due to inflation, unemployment and the trade deficit, economic activities have been reduced, efforts to improve government are not working either. Pakistan's economy faces more challenges in the coming days. In recent years, the automotive and real estate sectors, which were experiencing rapid development, are now in a serious crisis.
Industrial activities that already suffered from deceleration have stopped. The funds that are transferred from the banks to the commercial sector have fallen significantly. Foreign investment, which was lower than in recent years, has been reduced. Each report speaks of a fall in demand. Demand is low because people have no job. Industrial companies do not have work either, wages are not increasing, but often commercial companies have reduced employee salaries. For the past 6 years, business organizations have been eliminating employees.
The government itself does not have enough resources to give money to people so they can spend and create demand in the market. Pakistan's GDP growth rate of 2.5 in India in September, when it was 6 percent and fiscal year 2019, Bangladesh's GDP at 8.1 was percent. Bangladesh's industrial growth rate is 13 percent and the export rate is 10.1 percent.
But the recent IMF report on Pakistan's economy is very encouraging.
The first quarter of the $ 6 billion loan granted to Pakistan by the WTO will be reviewed at the end of October, but a five-day visit by the IMF delegation headed by the Director of the Middle East and Central Asia. The results have certainly come in the form of positive comments. Although this cannot be described as a breakthrough, it is still a sign of a trip in the right direction.
The IMF praised the performance of the State Bank to control inflation through monetary policy, while the bank also managed to improve foreign exchange reserves. The Federal Revenue Board has also been commended for the increase in tax revenues and the improvement in dealing with taxpayers, but since this is the beginning, the current fiscal year growth is expected to be only 2.4%. However, the news is of interest to the general public that inflation is likely to decrease
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