ISLAMABAD, JULY17: Pakistan’s GDP growth rate forecast for the fiscal year 2025 has been kept at 3.5 percent by the International Monetary Fund (IMF).
The Fund stated that Pakistan’s GDP is expected to grow by 3.5 percent in the fiscal year 2025 compared to 2 percent in the previous year in its most recent report, “World Economic Outlook (WEO) update: The Global Economy in a Sticky Spot,” which was published on Tuesday.The Fund’s WEO, which was published in April 2024, had the same GDP estimate for Pakistan.
In contrast to the government’s estimate of 3.6 percent, the World Bank has predicted Pakistan’s GDP growth rate for the fiscal year 2024–25 to be 2.3 percent.According to the Fund, global growth will be 3.2% in 2024 and 3.3% in 2025, in line with the WEO prediction from April 2024. However, as cyclical causes fade and activity becomes more in line with its potential, the varying impetus in activity at the beginning of the year has helped to somewhat narrow the production disparity among economies.
The rise of services prices is impeding the deflation process and making the normalization of monetary policy more difficult. The IMF stated that in light of rising trade tensions and more policy uncertainty, upside risks to inflation have consequently increased, creating the possibility of higher interest rates for even longer periods of time.
A careful sequencing of the policy mix is necessary to establish price stability and restore depleted buffers in order to handle these risks and maintain growth. At the start of the year, global activity and world trade picked up steam, the Fund continued, with trade being driven by robust exports from Asia, especially in the technology sector.
