MUMBAI/ISLAMABAD, Feb 15 (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 Moody's Analytics told Reuters.
"Our view is that an IMF bailout alone isn't 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.
Low income households could remain under extreme pressure as a result of high inflation on account of being disproportionately exposed to non-discretionary items.
The weaker rupee, which is plumbing record lows, is adding to imported inflation while domestically high energy costs on the back of tariff increases and still elevated food prices is likely to keep inflation high.