The International Monetary Fund (IMF) has released its latest report, “World Economic Outlook (WEO): Steady but Slow: Resilience amid Divergence,” projecting positive developments for Pakistan’s economy. The IMF forecasts a two percent GDP growth rate for Pakistan in the current fiscal year, a significant improvement from the negative growth experienced in the fiscal year 2023 (-0.2 percent). Additionally, inflation is projected to decline from 29.2 percent to 24.8 percent, while unemployment is expected to decrease from 8.5 percent to eight percent.
Looking ahead, the IMF anticipates further improvements, with Pakistan’s GDP projected to reach 3.5 percent in the fiscal year 2025. Inflation is forecasted to decrease to 12.7 percent in fiscal year 2025, while unemployment is expected to drop to 7.5 percent during the same period.
Furthermore, the IMF report highlights the global economic outlook, with a baseline forecast of continued growth at 3.2 percent during 2024 and 2025. While advanced economies are expected to experience a slight acceleration in growth, emerging market and developing economies may see a modest slowdown.
Despite global challenges, economic activity has remained resilient, supported by factors such as government spending and household consumption. As inflation converges towards target levels, central banks may pivot towards policy easing, while fiscal policies aimed at curbing government debt could potentially impact growth.
