ISLAMABAD, JULY 18: The International Monetary Fund (IMF) kept Pakistan’s GDP growth rate prediction for the fiscal year 2025 at 3.5 percent.
The International Monetary Fund (IMF) stated in its report “World Economic Outlook (WEO) update: The Global Economy in a Sticky Spot” that Pakistan’s GDP is predicted to expand by 3.5 percent in 2025, up from 2 percent in 2024. This prognosis aligns with the prior April 2024 IMF forecast. As opposed to the government’s more optimistic estimate of 3.6 percent, the World Bank (WB) has predicted a lower GDP growth rate of 2.3 percent for Pakistan for the fiscal year 2024–2025. Worldwide,
The IMF projects 3.2 percent in 2024 and 3.3 percent in 2025 for economic growth, which is in line with its April 2024 forecast. The study emphasizes that when cyclical variables fade and activity more closely resembles its potential, the uneven momentum in economic activity at the beginning of the year has reduced the production disparity across various economies.
The research does highlight the fact that the inflation of services prices is impeding disinflation efforts and making the normalization of monetary policy more difficult. The IMF issues a warning about heightened inflationary upside risks, which might result in longer-term interest rate increases in the face of rising trade tensions and more ambiguity about policy. To control these dangers and maintain expansion,
The IMF highlights how crucial it is to implement a thoroughly thought-out mix of policies in order to restore depleted economic buffers and achieve price stability. The Fund also points out that strong exports from Asia, especially in the technology sector, helped to boost signs of improvement in international trade and economic activity at the start of the year.
