An official report released on Thursday forecasts that the economic growth rate in the current fiscal year will be only 0.8% against the target of 5%. The Ministry of Finance released a report on the country’s loans, inflation, and economic indicators. According to the report, the inflation rate will be 28.5% in the ongoing financial year, the burden of loans has exceeded Rs55,800 billion, the rupee is expected to lose even more value, while the economy is expected to perform better from the next fiscal year. The economic growth rate is likely to be 3.5% in the fiscal year 2024 and 5% in 2025, the report says. The rate will reach 5.5% in fiscal year 2026, it adds. The report also claims Pakistan’s outstanding debt increased due to an increase in the interest rate. An increase in the dollar exchange rate also led to more inflation and debt burden. In the next financial year, inflation rate has been forecast at 21%. The outstanding debt is expected to exceed 70% of the economy by 2026, the report says. Inflation may rise to 6.5% in 2026, the ministry forecast, while the rate of dollar is expected to increase by 6% by the same period. Pakistan’s total debt till December 2022 was Rs55,800 billion. The dollar exchange rate increased by 11% from July-December. The domestic loans accounted for 62.8% of the country’s total debt as of December, the report said. In the same period, external debt accounted for 37.2% of the total debt. From July to December, the country received foreign loans worth $3.2 billion and returned $2.7 billion, the report stated. Inflation is expected to rise to 21% in FY 2024, while it is likely to grow at 7.5% in fiscal year 2025, the report said.