Staff Report
ISLAMABAD: Coordinator to Federal Tax Ombudsman and Chairman Kyrgyzstan Trade House Meher Kashif Younis Sunday predicted that Pakistan and the global economy would confront a tougher year in 2023 as major engines of global growth – China, the US, and Europe – are experiencing bleak economic conditions.
Speaking at a seminar on the “Impact of global recession on Pakistan economy and study chances to avoid it” held under the auspicious of Gold Ring Economic Forum, quoting IMF MD Kristalina Georgieva, he said she had also hinted that “2023 is going to be tougher than the year we left behind.”
Meher said the reason is the three major economies – China, the US, and Europe – are all slowing down simultaneously.
He said the Ukraine-Russia conflict is attributed as one of the significant factors behind this dismal economic growth and mounting spiralling inflation pressure coupled with high-interest rates engineered by central banks to bring price pressures to heal.
A third of global economy will be in recession during 2023
Meher said for the first time in 40 years of history, China’s growth in 2022 will likely be at or below global growth.
He said, “IMF had also forecasted that a third of the global economy would be in recession and half of European will also be in a recession this year. However, the US is most resilient and may avoid recession as its market remains quite strong.”
He said since China has scrapped its zero-covid policy and embarked on reopening its economy, consumers there remain wary as coronavirus cases surge.
Meher said the prevailing slackening global economic scenario would also affect the fragile economy of Pakistan. He said not only Pakistan but 90 other countries of the world have also faced massive devaluation of their currencies against the dollar.
He said one viable option is to revert to the century-old barter system to offset the dollar pressure on economies. He said the business community should be ready to face global economic shocks beyond control and tailor their plans timely to absorb their shocks.
