ISLAMABAD: International Monetary Fund (IMF) has lowered its forecast for Pakistan’s economic growth to 2.6 percent. The IMF also revised global economic growth projections due to uncertainty stemming from US President Donald Trump’s trade tariffs.
Details from the IMF’s World Economic Outlook report show a reduction in Pakistan’s economic growth estimate from 3 percent to 2.6 percent. The IMF anticipates further declines in Pakistan’s economic growth rate for the upcoming fiscal year.
The IMF’s January 2025 World Economic Outlook report originally projected Pakistan’s economic growth for the current fiscal year at 3 percent. Previously, in October 2024, the IMF estimated Pakistan’s economic growth at 3.2 percent for the current fiscal year. There is now a concern that Pakistan may not achieve its targeted economic growth rate.
In positive news, the IMF has lowered its estimate for Pakistan’s current account deficit, from 1 percent of GDP to 0.1 percent.
Previously, the IMF anticipated a widening current account deficit of up to $3.7 billion, which has now been reduced to an estimated $400 million. The IMF projects the current account deficit will remain at 0.4 percent of GDP in the following fiscal year.
