IMF forecasts Pakistan's economic growth by 3.2% in FY25

The International Monetary Fund (IMF) predicted a positive transformation for Pakistan’s economy, which they believe will grow by 3.2 percent in the ongoing fiscal year.

The World Economic (October 2024) released on Tuesday stated that the growth rate is expected to go up with a single-digit inflation rate of 9.5 percent and a current account deficit near 1 percent.

Despite regional conflict, a slowdown in China’s collaboration, financial market volatility, and the effects of tight monetary policy, the Fund forecasted the country's estimated growth at 3.2 percent.

The global loan lenders expected that the country’s economy would boost to 4.5 percent by FY2029. In contrast, the latest forecast opposes the predictions of the World Bank and Asian Development Bank, both of which believed that the country’s economy is likely to grow 2.8 percent with a 10 percent inflation rate during FY25.

Moreover, the outlook stated that the inflation, measured at 9.5 percent in the current fiscal year, would drop to 6.5 percent by the year 2029, current account deficit is expected to remain unchanged at 0.9 percent of GDP by 2029, which is a higher than 0.2 percent of last year.

However, the report affirms the well-being of the public, as predicted that the unemployment rate is expected to decline to 7.5 percent by the end of this year, compared to the current 8 percent.