IMF's Revised Economic Outlook Paints Grim Picture for Pakistan

The International Monetary Fund has downgraded Pakistan's GDP growth projection to 3% for 2025, reflecting ongoing economic challenges. This aligns with recent forecasts by the Asian Development Bank. Both organizations maintain a cautiously optimistic view for Pakistan's medium-term economic future, despite global growth also seeing a slight downturn.

The International Monetary Fund (IMF) has adjusted Pakistan's economic outlook, reducing its projected GDP growth for 2025 to 3%, as per a recent media report. This revision comes three months after a previous forecast of 3.2%. The change is part of a broader global economic assessment found in the IMF's ''World Economic Outlook Update: Global Growth – Divergent and Uncertain,'' reported by The Express Tribune.

The IMF now forecasts that Pakistan's GDP will grow by 4% in 2026. However, the downward revision signifies persistent challenges within the Pakistani economy, though specific reasons for the adjustment were not detailed by the IMF.

This new forecast aligns with the Asian Development Bank's projection last month, which also pegged Pakistan's growth at 3% for the fiscal year 2024-25, slightly up from an earlier expectation of 2.8%. While both institutions acknowledge challenges, they retain a cautious optimism about Pakistan's medium-term economic prospects. Globally, the IMF anticipates a growth rate of 3.3% for both 2025 and 2026, which is below the historical average of 3.7%.

(With inputs from agencies.)