IMF Predicts Pakistan’s Economic Growth Will Fall Short of Government’s Forecasts

Islamabad: The International Monetary Fund (IMF) has forecasted that Pakistan’s economic growth will fall short of the government’s estimates for the current fiscal year.
In its latest global economic report, the IMF highlighted that potential high tariffs and ongoing uncertainty pose significant risks to both Pakistan and the global economy. The IMF has projected Pakistan’s economic growth to be around 3.6% for the year, lower than the government’s target of 4.2%.
While Pakistan’s growth rate is expected to outperform the global economic growth, which is forecast to be 3% in 2025 and 3.1% in 2026, the country’s economic outlook remains influenced by global inflation trends and geopolitical tensions.
Globally, inflation is expected to ease and financial conditions are improving. However, geopolitical instability continues to be a major challenge for global economic stability. The IMF also pointed out that high tariffs and uncertainty could pose a threat to both Pakistan’s and the global economy’s recovery. Restoring confidence and ensuring favorable fiscal and policy conditions have been identified as key priorities moving forward.