Inflation in Pakistan could average 33% in H1 2023, says Moodys economist

Inflation in Pakistan could average 33% in H1 2023, says Moody's economist

By Swati Bhat and Gibran Naiyyar Peshimam

MUMBAI/ISLAMABAD (Reuters) – Inflation in Pakistan could average 33% in the first half of 2023 before trending lower, and a bailout from the International Monetary Fund alone is unlikely to put the economy back on track, a senior economist with Moodys Analytics told Reuters.

“Our view is that an IMF bailout alone isnt going to be enough to get the economy back on track. What the economy really needs is persistent and sound economic management,” senior economist Katrina Ell said in an interview on Wednesday.

“There‘s still an inevitably tough journey ahead. We’re expecting fiscal and monetary austerity to continue well into 2024,” she added.

(Reporting by Swati Bhat; Editing by Kim Coghill)