IMF hints at rise in Pakistan's inflation

ISLAMABAD: The International Monetary Fund has released its economic outlook for Pakistan for April 2025, projecting a GDP growth rate of 2.6% for the current fiscal year, ARY News reported quoting IMF.

According to IMF outlook report, this falls short of Pakistan’s ambitious target of 3.5% economic growth set for the same period.

The IMF also forecasts an inflation rate of 6.5% for the fiscal year, indicating persistent price pressures. Additionally, the debt-to-GDP ratio is expected to reach 73.6%, reflecting a significant debt burden on the economy. The unemployment rate is projected to hover around 8%, signaling ongoing challenges in job creation.

The IMF also estimates a marginal current account deficit of 0.1% of GDP for the fiscal year, suggesting a relatively balanced external account. These projections highlight the economic challenges Pakistan faces as it navigates growth, inflation, and debt management.

Earlier today, the International Monetary Fund raised concerns over political interference in civil service appointments in Pakistan.

According to sources, IMF Managing Director Kristalina Georgieva highlighted systemic flaws in Pakistan’s governance structure during a meeting with Finance Minister Muhammad Aurangzeb.

The IMF expressed reservations about widespread corruption risks, citing weak institutional accountability and fragmented decision-making processes, sources said.

The Fund further said that political meddling in appointments undermines the credibility and efficiency of the civil service.

In response, Finance Minister Aurangzeb assured the IMF chief of Pakistan’s commitment to implementing structural reforms under the ongoing reform program.

Following extensive consultations, the IMF has issued a set of key recommendations focused on strengthening anti-corruption measures.

Notably, the Fund has linked public procurement processes and departmental performance to enhanced structural accountability.