IMF projects inflation rise in Pakistan
- By Shoaib Nizami -
- Dec 10, 2025
ISLAMABAD: The International Monetary Fund (IMF) has predicted a rise in inflation in Pakistan, ARY News reported on Wednesday, quoting an official report.
The IMF has warned that Pakistan’s inflation could climb from 4.5 per cent to 6.3 per cent, potentially reaching 8.9 per cent by June 2026.
The IMF also released updated economic projections, forecasting a 3.2 per cent growth rate for the current fiscal year. Unemployment is expected to ease slightly, falling from 8 per cent to 7.5 per cent.
On fiscal indicators, the tax-to-GDP ratio is projected to rise to 16.3 per cent in FY2026, up from 15.9 per cent in FY2025. The fiscal deficit is anticipated to narrow to 4 per cent, compared with 5.4 per cent last year, though the country’s debt burden is expected to remain elevated at 69.6 per cent of GDP.
The IMF’s latest report highlights the twin challenge Pakistan faces: managing rising prices while sustaining economic growth and fiscal stability.
Earlier, the International Monetary Fund (IMF) Executive Board released its official statement following approval of $1.2 billion for Pakistan under its dual-track bailout, the 37-month Extended Fund Facility (EFF) and the climate-focused Resilience and Sustainability Facility (RSF).
The decision came on Monday, after the IMF Executive Board convened in Washington.
According to the IMF, the Executive Board has approved $1.2 billion for Pakistan, which will be transferred immediately. The statement notes that Pakistan implemented economic and energy sector reforms on time.