Pakistan’s central bank said on Friday GDP growth was likely to remain significantly lower this year than the previous year, with elevated inflation.

The bank made the findings in its half-year report, which said Pakistan’s macroeconomic conditions have deteriorated due to the global economic situation, uncertainty over an IMF programme, forex constraints, political instability and flash floods.

It gave no new figures for growth on Friday. In October, the bank projected GDP growth would slow to 2% this fiscal year, though International Monetary Fund (IMF) said in April the figure would be 0.5%.

Pakistan is facing its worst ever economic crisis, with critical IMF funding needed to avert a balance of payment crisis delayed for months.

The report said that the contraction in federal development expenditures to contain deterioration in the fiscal position has posed challenges for the FY23 economic outlook.