Government admits unemployment rising to 10.3%

By: Communicators – Business Team (July 12, 2024)

The unemployment rate in Pakistan has surged to 10.3 percent, as reported by Finance Secretary Chaudhry Imdad Ullah Bosal during a briefing to the National Assembly Standing Committee on Finance. This figure, cited from the World Bank, contrasts with the International Labor Organization’s estimate of 8.2 percent for 2024 and the International Monetary Fund’s projection of 8 percent. The most recent Pakistan Labor Force Survey, from 2020-21, recorded the unemployment rate at 6.3 percent, but a new survey has not been conducted due to last year’s census.

Finance Minister Muhammad Aurangzeb highlighted that a staff-level agreement with the IMF is anticipated by the end of this month, with a new program spanning 36-39 months. He assured that the Pakistani Rupee would remain stable and noted an expected slight increase in inflation in the coming months, potentially accompanied by reduced interest rates. The finance minister also mentioned that while the current account deficit has stabilized, it still needs ongoing attention, and stabilization policies will continue throughout fiscal year 2024-25.