IMF issues World Economic Outlook highlighting Pakistan’s economic trends

ISLAMABAD: The International Monetary Fund (IMF) has released its World Economic Outlook report, projecting steady economic recovery and moderate inflation for Pakistan in the ongoing fiscal year, ARY News reported.

According to the IMF report, Pakistan’s GDP growth rate is expected to reach 3.6 percent in 2025, compared to 2.7 percent recorded in the previous fiscal year, reflecting signs of gradual stabilization in the country’s economy.

The IMF further estimated that unemployment in Pakistan will decline from 8 percent last year to 7.5 percent in the current fiscal year, suggesting a modest improvement in job creation.

Meanwhile, inflation in Pakistan is expected to remain around 6 percent, slightly higher than 4.5 percent in the previous fiscal year, according to the IMF. The report also projects the current account deficit to stay contained at 0.4% of GDP, signaling a relatively balanced external sector.

The IMF stated that the impact of recent floods on Pakistan’s economy is still being assessed, and the estimated damages have not yet been included in the current outlook.

For fiscal year 2025–26, the IMF expects Pakistan’s unemployment rate to remain below 8%, while inflation and growth levels are projected to stay stable.

The World Economic Outlook highlights Pakistan’s continuing efforts toward macroeconomic stabilization, but warns that external challenges and climate-related risks could still pose hurdles to sustained recovery.

Also Read: IMF shows reservations over govt officers’ assets declaration mechanism

Earlier, the IMF had expressed its concern over the government officers’ assets declaration mechanism.

The International Monetary Fund demanded the formation of a mechanism in the federal government as well as in provinces for the government officials’ declaration of their assets, ministry’s sources said.

The lender has refused to accept a proposal of the economic team to only share the information of accounts, sources said.

According to sources, the minister of finance in a meeting with the MD IMF, will request for signing the staff level agreement and will seek new timelines for the mechanism of assets declaration.