Pakistan govt's gross debt to be 71.3% of GDP in 2022: IMF projection

The Pakistan government's gross debt will decline from 74 pc of Gross Domestic Product (GDP) in 2021 to an estimated 71.3 pc of GDP in 2022, according to International Monetary Fund (IMF) projections.

According to the "Fiscal Monitor, Fiscal Policy from pandemic to war", the government gross debt for Pakistan has been projected to decline in the years to come.

The gross debt to GDP was 74 per cent in the fiscal year 2021. However, it is projected to decline to 71.3 per cent in the current fiscal year and 66.8 per cent in the upcoming financial year 2023, The Nation reported.

Meanwhile, it would further decline to 61.7 per cent in the next year 2023. The government's revenue is projected at 12.6 per cent of GDP for 2022 and 12.9 per cent for 2023 against 12.5 per cent during the same period of 2021.

The fund has projected the government primary balance at -1 per cent for 2022 as against -1.1 per cent in 2021. Furthermore, the government's overall balance is projected at -5.8 per centfor 2022 against -6.1 per cent in 2021, according to The Nation.

The report has projected government expenditure at 18.4 per cent of the GDP in 2022 and 17.1 per cent in 2023 compared to 18.6 per cent in 2021.

There would be a total financing need of about 35.9 per cent of GDP in 2021.

Earlier on Tuesday, the IMF projected Pakistan's GDP growth at 4 per cent during the current fiscal year.

The Fund has projected the inflation rate in double digits at 11.2 per cent for the year 2022 against 8.9 per cent in 2021.

Meanwhile, the report has projected consumer prices for the end of the period of 2023 at 10.5 per cent. The current account balance is projected at the negative 5.3 per cent for 2022 compared to a negative 0.6 per cent, as per The Nation.