ISLAMABAD: The Pakistani government blamed the country's economic woes on the delay in finalising a deal with the International Monetary Fund (IMF), even as it predicted further price increases and a slowdown of the economy.

The finance ministry's economic adviser division noted in its monthly outlook report that political unrest has begun to fuel heightened inflationary expectations, according to The Express Tribune.

The finance ministry offered a bleak picture of the economy while withholding its inflation projection figure for the previous month.

It claimed that the Monthly Economic Indicator, a technique used to forecast economic growth based on past and present indicators, has slowed down even more.

According to the Finance Ministry, inflation in March "may continue at the top bound as witnessed in February, when it was 31.5 percent." The market anticipates that inflation would soar to 36% despite the Ministry not providing a number this time. This is because of a number of unfavourable measures.

According to a Ministry conservative internal assessment, March's inflation rate was around 34%, according to The Express Tribune.

The Ministry stated that political and economic uncertainty is "a potential explanation of rising price level."

It also mentioned that the IMF program's delay was making things worse.

According to the research, inflationary expectations have continued to be high because of the economic pain brought on by the stabilisation program's delay.

According to the monthly outlook, bulk purchases made during Ramadan may result in a demand-supply imbalance and an increase in the price of necessities. Floods have a delayed effect that has prevented a full recovery of output losses, particularly for important agricultural products. As a result, there has been a continuing lack of necessities.

The average Monthly Economic Indicator (MEI) throughout the first eight months of the current fiscal year, according to the Pakistani finance ministry, indicates a further decline in domestic economic activity.

According to The Express Tribune, this appears to be caused by a lack of industrial dynamism, which accelerates inflation and reduces the purchasing power of investors and consumers. Negative growth in exports and imports also serves as an example.

Since the beginning of the fiscal year, the indicator has been in the negative range.

According to the Ministry's most recent evaluation, if no progress is shown in the remaining time, there may not be any growth within the current fiscal year.

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